Course 80535: Finance Advanced in Microsoft Dynamics NAV 2013

Transcription

1 Course 80535: Finance Advanced in Microsoft Dynamics NAV 2013

2 This courseware is provided as-is. Information and views expressed in this courseware, including URL and other Internet Web site references, may change without notice. Unless otherwise noted, the examples depicted herein are provided for illustration only and are fictitious. No real association or connection is intended or should be inferred. This courseware does not provide you with any legal rights to any intellectual property in any Microsoft product. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this courseware may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means or for any purpose, without the express written permission of Microsoft Corporation. Copyright 2012 Microsoft Corporation. All rights reserved. Microsoft, Microsoft Dynamics, Microsoft PowerPoint, Microsoft SQL Server data management software and Microsoft Dynamics NAV are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners.

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11 Table of Contents Introduction Microsoft Dynamics Courseware Overview Student Objectives Module 1: INTRASTAT Lesson 1: Set Up Intrastat Lesson 2: Report Intrastat Lab 1.1: Create an Intrastat Report Module 2: VAT RATE CHANGE TOOL Lesson 1: Prepare for VAT Rate Change Tool Lesson 2: Set Up Using VAT Rate Change Tool Lesson 3: Perform VAT Rate Conversions Module 3: MULTICURRENCY Lesson 1: Currency Card and Currency Exchange Rates Lesson 2: Set Up Multicurrency for Customers, Vendors, and Bank Accounts Lesson 3: Process Sales and Purchase Documents Lab 3.1: Process a Sales Invoice Lesson 4: Process Cash Receipts Lesson 5: Process Payments Lab 3.2: Post Expenses in Foreign Currency Lesson 6: Adjust Exchange Rates Batch Job for Customers, Vendors, and Bank Accounts3-28 Lab 3.3: Update the USD:GBP Exchange Rate Lesson 7: Set Up Additional Reporting Currency Lesson 8: Use Additional Reporting Currency Lesson 9: Adjust Exchange Rates Batch Job for GL Accounts

12 Finance Advanced in Microsoft Dynamics NAV 2013 Lesson 10: View the Exchange Rate Adjustment Register Lesson 11: Summary of Currency Exchange Rates Module 4: BUDGETS Lesson 1: General Ledger Budgets Lesson 2: Budget Page Lesson 3: Creating Budgets Manually Lab 4.1: Create a Budget Lesson 5: Copying Budgets Lab 4.2: Copy a Budget Lesson 6: Exporting and Importing Budgets Module 5: COST ACCOUNTING Lesson 1: Workflow in Cost Accounting Lesson 2: Setting Up Cost Accounting Lesson 3: Cost Entries Lab 5.1: Using Cost Journals Lesson 4: Cost Budgets Lab 5.2: Set Up a Cost Budget Lesson 5: Click Yes Lesson 6: Cost Allocation Lab 5.3: Set Up a Cost Allocation Lesson 7: Cost Accounting History Lesson 8: Cost Accounting Reporting Lesson 9: Tips and Tricks

13 Module 6: CASH FLOW FORECAST Table of Contents Lesson 1: Functions of the Cash Flow Forecast Lesson 2: Setting Up Cash Flow Forecasts Lesson 3: Creating Cash Flow Forecasts Lab 6.1: Creating a Cash Flow Forecast Lab 6.2: Entering Manual Revenues and Expenses Lab 6.3: Using the Cash Flow Worksheet Lesson 4: Cash Flow Forecast Reporting Lab 6.4: Printing the Cash Flow Date List Module 7: FINANCIAL REPORTING AND ANALYSIS Lesson 1: Analyze the Chart of Accounts Lesson 2: Account Schedules Lab 7.1: Create a Detailed Account Schedule Lab 7.2: Create a Cost Account Schedule Lab 7.3: Create a Cash Flow Account Schedule Lesson 3: Analysis by Dimensions Lab 7.4: Create an Analysis View Lab 7.5: Create a Cash Flow Analysis View Lesson 5: Export Analysis Views to Microsoft Excel Lab 7.6: Export an Analysis View to Microsoft Excel Lesson 6: Dimension-Based Reports Lesson 7: Combine Analysis Views with Account Schedules Lab 7.7: Combine an Analysis View with an Account Schedule Lesson 8: Finance Performance Charts

14 Finance Advanced in Microsoft Dynamics NAV 2013 Module 8: XBRL Lesson 1: XBRL Terminology Lesson 2: XBRL Specifications and Taxonomies Lesson 3: Work with Linkbases Lesson 4: Lesson 5: Enter XBRL Line Definitions Lesson 6: Export the XBRL Lines Lab 8.1: Annual Reporting with XBRL

15 Table of Contents We created this additional Table of Contents to assist you in quickly finding out the areas that are new and, or changed from the Microsoft Dynamics NAV earlier version for this course. These areas are identified with this icon throughout the training material. Module 5: COST ACCOUNTING Module 6: CASH FLOW FORECAST Module 7: FINANCIAL REPORTING AND ANALYSIS Topic 2: Account Schedules Page Topic 4: Column Layout Overview Topic 6: Acc. Schedule Overview Matrix Lab 7.2: Create a Cost Account Schedule Lab 7.3: Create a Cash Flow Account Schedule Topic 1: Analysis View Card Overview Lab 7.5: Create a Cash Flow Analysis View Topic 3: Cash Flow Dimensions Detail Report Demonstration: Generate the Cash Flow Dimensions Detail Report Lesson 7: Finance Performance Charts

16 Finance Advanced in Microsoft Dynamics NAV

17 INTRODUCTION Training is an important component of maintaining the value of a Microsoft Dynamics investment. Quality training from industry experts keeps you up-todate and helps you develop the skills necessary for fully maximizing the value of your solution. Microsoft Dynamics provides different kinds of training to meet everyone s needs, from online training, classroom training, or training materials. Select the training type that will best help you stay ahead of the competition. Online Training Online training delivers convenient, detailed training in the comfort of your own home or office. Online training provides immediate access to training 24 hours a day. It is perfect for the customer who does not have the time or budget to travel. Online training options combine the efficiency of online training with the thorough product coverage of classroom training. Classroom Training Classroom training provides, comprehensive learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive practical experience with instruction from our certified staff of experts. Training Materials Training materials help you learn at your own pace, in your own time, with information-packed training manuals. The many training manuals features many tips, tricks, and insights that you can reference continuously. Microsoft Dynamics Courseware The Microsoft Dynamics courseware consists of detailed training manuals that are designed from a training perspective. These manuals include advanced topics, in addition to training objectives, exercises, interactions, and quizzes. Look for a complete list of manuals that are available for purchase on CustomerSource or PartnerSource. 0-1

18 Finance Advanced in Microsoft Dynamics NAV 2013 Microsoft Dynamics Coursew ware Contents Microsoft Dynamics courseware contains labs and quick interactions. These help Lab Within the Microsoft Dynamics training materials, you will find labs. These labs are typically offered in two levels to accommodate each student s variety of knowledge and expertise. We suggestt that you try the High level steps first. If you need help completing the task, look to the information in the Detailed steps. High level steps High levels steps are the most challenging. These steps are designed for the experienced student who requires little instruction to complete the required task. Detailed steps Detailed steps are geared toward new users who require detailed instructionss and explanations to completee the lab. Detailed steps guide you through the whole task. This includes navigation. What s New Icon This training material might include content for new features that is specific to this software version, and to any updated features. To assist in finding the conten for the new features, an icon ( ) is placed next to the heading. The icon identifies areas that are new and, or changed from the earlier version. However, it is important to review all content to make sure theree is a thoroughh understanding of this information. 0-2

19 Introduction Student Objectives What do you hope to learn by participating in this course? List three main objectives here

20 Finance Advanced in Microsoft Dynamics NAV

21 MODULE 1: INTRASTAT Module Overview Intrastat is a required reporting process for all European Union (EU) companies that trade with other EU countries/regions. Companies within the EU are responsible for the following: Reporting to their statistics authorities the movement of goods every month. Delivering the report to their tax authorities. Microsoft Dynamics NAV 2013 can be set up to run all the necessary reports related to Intrastat and make the reporting more efficient for the company. The Intrastat journal is used to complete periodic Intrastat reports. Objectives The objectives are: Set up Intrastat for use in Microsoft Dynamics NAV Explain how to run and submit Intrastat reports. 1-1

22 Finance Advanced in Microsoft Dynamics NAV 2013 Set Up Intrastat For posted item entries to contain the necessary information when you import them into the Intrastat journal line, the following must be set up: Tariff numbers Transactions types Transport methods The following can be set up for Intrastat reporting: Transaction specifications Areas Entry and exit points After each of these are set up: Tariff Numbers must be assigned on the Foreign Trade FastTab of each item. Transaction Types and Transport Methods must be assigned on the Foreign Trade FastTab of sales and purchase documents before posting. Transaction Specifications, Areas, and Entry/Exit Points must be assigned on the Foreign Trade FastTab of sales and purchase Intrastat Journal templates and batches must also be set up before Intrastat can be reported. Set Up Tariff Numbers Customs and tax authorities have established eight-digit item codes for various items. These codes are specified as tariff numbers. To set up tariff numbers, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Tariff Numbers. 4. Click New to insert a new line. 5. In the No. field, enter the established eight-digit item code. 6. In the Description field, enter the established description. 7. Select the Supplementary Units check box if the customs and tax authorities require information about quantity and unit of measure for this item. 1-2

23 8. Repeat these steps for all items bought and sold. 9. Click OK to close the Tariff Numbers page. Module 1: Intrastat FIGURE 1.1: TARIFF NUMBERS WINDOW Set Up Transaction Types Each country/region has a set of codes for transaction types that are defined for Intrastat, such as the following: Ordinary purchase/sale Exchange of returned goods Exchange of non-returned goods To set up transaction types, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Transaction Types. 4. Click New to insert a new line. 5. In the Code field, enter the established transaction type code. 1-3

24 Finance Advanced in Microsoft Dynamics NAV In the Description field, enter the standard description established by the authorities in the relevant country/region. 7. Repeat these steps for all transaction types. 8. Click OK to close the Transaction Types page. FIGURE 1.2: TRANSACTION TYPES WINDOW Set Up Transport Methods There are seven one-digit codes for the transport methods that are defined for Intrastat: 1 for sea 2 for rail 3 for road 4 for air 1-4

25 5 for post 7 for fixed installations Module 1: Intrastat 9 for own propulsion (for example, transporting a car by driving it) When you enter these methods in Microsoft Dynamics NAV 2013, these descriptions are not required. However, the descriptions must provide a similar meaning. To set up transport methods, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Transport Methods. 4. Click New to insert a new line. 5. In the Code field, enter the established one-digit transport methods code. 6. In the Description field, enter a description of the transport method. 7. Repeat these steps for all transport methods. 8. Click OK to close the Transport Methods page. FIGURE 1.3: TRANSPORT METHODS WINDOW 1-5

26 Finance Advanced in Microsoft Dynamics NAV 2013 Set Up Transaction Specifications Transaction specifications are used to supplement the transaction type information and are also pre-established. To set up transaction specifications, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Transaction Specifications. 4. Click New to insert a new line. 5. In the Code field, enter the established transaction specification code. 6. In the Text field, enter the established description of the transaction specification. 7. Repeat these steps for all transaction specifications. 8. Click OK to close the Transaction Specifications page. Set Up Entry and Exit Points Entry and exit points are the locations where items from abroad are shipped or received, for example, Heathrow Airport. To set up entry and exit points, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Entry/Exit Points. 4. Click New to insert a new line. 5. In the Code field, enter a code representing a location used as a shipping point. 6. In the Description field, type a description that specifies the location. 7. Repeat these steps for all entry/exit points. 8. Click OK to close the Entry/Exit Points page. Set Up Areas Areas are used to supplement country/region information. To set up areas, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 1-6

27 Module 1: Intrastat 3. On the Application Setup page, click Financial Management > Intrastat > Areas. 4. Click New to insert a new line. 5. In the Code field, enter the established code for the area. 6. In the Text field, type a description of the area. 7. Repeat these steps for all transaction specifications. 8. Click OK to close the Areas page. Set Up Country Codes If you perform business with EU countries/regions, you must fill in the EU Country/Region Code and the Intrastat Code fields on the Countries/Regions page. Both codes use the ISO standard code for describing the countries/regions, such as the following: BE for Belgium NL for Netherlands DE for Germany In addition, you must fill in the Intrastat code because the Get Item Ledger Entries batch job in the Intrastat journal retrieves only the entries that contain a country code with an Intrastat code. Therefore, make sure that Intrastat codes are set up for the country codes used in the batch job. To set up EU country/region and Intrastat codes on countries/regions, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click General, and then click Countries/Regions 4. Click Edit List. 5. For each EU country where business is performed: o In the EU Country/Region Code field, enter the ISO standard code for the country. o In the Intrastat Code field, enter the ISO standard code for the country. Note: Make the EU Country/Region Code and Intrastat Code fields available through the Choose Columns function. 1-7

28 Finance Advanced in Microsoft Dynamics NAV Click OK to close the Countries/Regions page. FIGURE 1.4: COUNTRIES/REGIONS WINDOW Set Up Items To assign tariff numbers and net weight to an item, follow these steps: 1. On the navigation pane, click Departments. 2. Click Warehouse > Planning & Execution > Items. 3. Select the item to which you want to assign a tariff number, and then click Edit. 4. Expand the Foreign Trade FastTab. 5. In the Tariff No. field, enter the correct tariff number. 6. In the Net Weight field, enter the appropriate weight. 7. Click OK to close the Item Card page Note: Both the tariff number and net weight are not required to be assigned to the item card before posting sales and purchase documents. You can always assign them later, before you create the Intrastat reports. 1-8

29 Module 1: Intrastat FIGURE 1.5: ITEM CARD FOREIGN TRADE FASTTAB Intrastat Journal Templates and Batches The setup of the Intrastat journal batches is important because it determines the date filter for the entries to be reported. Intrastat journal batches are not similar in structure to other journal batches in Microsoft Dynamics NAV To set up an Intrastat journal template, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Intrastat > Intrastat Journal Templates. 4. Click New to create a new line. 5. In the Name field, enter a unique identifier for the template. 6. In the Description field, enter a short description. To create an Intrastat journal batch, follow these steps: 1. With the relevant template selected, on the Navigate tab, click Batches. 2. In the Name field, type a unique identifier for the batch. 3. In the Description field, type a short description. 4. In the Statistics Period field, enter the year and month period as a four-digit code: YYMM. For example, 1401 represents January In the Currency Identifier field, enter the currency of the Intrastat report. If this field is left blank, local currency is used. 1-9

30 Finance Advanced in Microsoft Dynamics NAV If additional reporting currency is used, follow these guidelines: o o Use the Choose Columns function to display the Amounts in Add. Currency field. Select the Amounts in Add. Currency check box to display the Intrastat report in additional reporting currency. Note: More information on foreign currencies and the additional reporting currency can be found in the module, Multicurrency, in this course. 7. The Reported check box indicates whether the entries were reported to the tax authorities. The check box is automatically selected when the Intrastat - Make Disk Tax Auth. batch job is run. If it is necessary, clear the check box. The system will rerun the report. 8. Click OK to close the Intrastat Jnl. Batches page. 9. Click OK to close the Intrastat Journal Templates page. Note: Because Intrastat is typically reported monthly, we recommend that you set up 12 batches based on the same template, with a different Intrastat journal batch for each month. Report Intrastat The process of reporting Intrastat begins with filling in the Intrastat journal and then selecting how to submit the reports to the required reporting authorities. Note: Intrastat journals are not posted. They are generated for reporting only. Intrastat Journals Intrastat journals are populated by using either of the following methods: Manually Automatically with the Get Item Ledger Entries batch job Note: The manual option is typically used to record G/L entries and fixed assets in addition to item ledger entries, such as service charges, freight costs, and landed costs. 1-10

31 Module 1: Intrastat To populate the Intrastat journals using the batch job, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > General Ledger > Intrastat Journals. 3. In the Batch Name field, click the drop-down list and select the relevant batch. 4. Click OK. 5. On the Home tab, click Get Entries. 6. Make sure the Get Item Ledger Entries batch job appears with the Starting Date and Ending Dates populated based on the statistic period on the journal batch. 7. In the Cost Regulation % field, enter a percentage increase to the statistical value of each entry for freight and insurance costs. 8. Click OK. The Intrastat journal is populated with all the entries for the specified period and for those items that were assigned a tariff number. Any missing information about Transaction Types, Transport Methods, Transaction Specifications, Entry/Exit Points, and Areas, can be completed on the journal line. This does not affect the original item ledger entries, because the Intrastat journal will not be posted. Submit Intrastat As soon as the Intrastat Journal is populated, the following report options are available: Checklist Report - a printed checklist to make sure that all information in the journal is correct. Form - all the information that is needed to complete the official Intrastat form provided by the tax authority in your country/region. A separate report must be printed for receipts and shipments. Make Diskette - computer files that contain the transactions for the period. These must be provided to the tax authorities in addition to forms. The Intrastat - Make Disk Tax Auth. batch job is used to create the necessary files. A separate report must be printed for receipts and shipments. As soon as the batch job is run, the Reported field is selected for the related batch on the Intrastat Journal Batch page and the Internal Reference Number field on every journal line in the batch is filled in. We recommend that you use each function in the order that it appears. 1-11

32 Finance Advanced in Microsoft Dynamics NAV 2013 Print Checklist Reports Option To print the checklist report option, follow these steps: 1. Make sure the journal is now filled in on the Intrastat Journal page. 2. On the Home tab, click Checklist Report. 3. Expand the Options FastTab. 4. Select the Show Intrastat Journal Lines check box to list the Intrastat journal lines. 5. Click Print to print the report. The checklist report contains: The same information as that in the disk file. Totals for each combination of Tariff Number, Country/Region Code, Transaction Type, and Transport Method fields. Print Form Option To use the print form option, follow these steps: 1. Make sure the journal is now filled in on the Intrastat Journal page. 2. On the Home tab, click Form. 3. Expand the Intrastat Jnl. Line FastTab. 4. In the Filter field for the Type line, click the drop-down list to select either Receipt or Shipment. If left blank, the default type is Receipt. 5. Click Print to print the report. If both sales and purchase transactions are reported, a separate form must be completed for each type so that the report must be printed two times. Make Diskette Option To make the disk, follow these steps: 1. Make sure the journal is now filled in on the Intrastat Journal page. 2. On the Home tab, click Make Disk. 3. Expand the Intrastat Jnl. Line FastTab. 4. In the Filter field for the Type line, click the drop-down list to select either Receipt or Shipment. If left blank, the default type is Receipt. 5. Click OK. 6. Click Save to save the report. 7. Enter the file location, and then click Save. 8. Click OK to close the Intrastat Journal page. 1-12

33 Lab 1.1: Create an Intrastat Report Module 1: Intrastat Scenario It is your job to report to Intrastat authorities every month. First set up the appropriate journal, named lntra2014, and journal batch, named JAN. Then create the form for the Intrastat shipments in January Exercise 1: Create an Intrastat Report Task 1: Create an Intrastat Report High Level Steps 1. Create the Intrastat journal batch. 2. Populate the Intrastat journal. 3. Create the form to report to the authorities. Detailed Steps 1. Create the Intrastat journal batch. a. On the navigation pane, click Departments. b. Click Administration, and then click Application Setup. c. On the Application Setup page, click Financial Management > Intrastat > Intrastat Journal Templates. d. On the Navigate tab, click Batches. e. In the Name field, enter JAN f. In the Description field, enter January 2014 g. In the Statistics Period field, enter h. Leave the Currency Identifier field blank. i. Click OK to close the Intrastat Jnl. Batches page. j. Click OK to close the Intrastat Journal Templates page. 2. Populate the Intrastat journal. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > General Ledger > Intrastat Journals. c. In the Batch Name field, make sure that the JAN journal batch is selected 1-13

34 Finance Advanced in Microsoft Dynamics NAV 2013 d. Click OK. e. On the Home tab, click Get Entries. f. Click OK. 3. Create the form to report to the authorities. a. On the Home tab, click Form. b. Expand the Intrastat Jnl. Line FastTab. c. In the Filter field for the Type line, click the drop-down list to select either Receipt or Shipment. If left blank, the default type is Receipt. d. Click Print to print the report. 1-14

35 Module Review Module 1: Intrastat Module Review and Takeaways When doing business with EU countries, Intrastat must be reported. Microsoft Dynamics NAV 2013 can run all the necessary reports related to Intrastat. To accurately report Intrastat to the appropriate authorities, understand the reporting capabilities that are available in Microsoft Dynamics NAV Test Your Knowledge Test your knowledge with the following questions. 1. Which setup requirement for Intrastat includes seven predefined one-digit codes? ( ) Tariff Numbers ( ) Transaction Types ( ) Transport Methods ( ) Transaction Specifications 2. Where are Tariff Numbers specified after setup? ( ) On the Foreign Trade FastTab of each item. ( ) On the Foreign Trade FastTab of each customer. ( ) On the Foreign Trade FastTab of each vendor. ( ) On the Foreign Trade FastTab of each sales or purchase document. 3. Which of the following is not required to be set up to accurately report Intrastat? ( ) Tariff Numbers ( ) Transport Methods ( ) Transaction Types ( ) Transaction Specifications 1-15

36 Finance Advanced in Microsoft Dynamics NAV If business is performed with EU countries/regions, what must be set up on the related ( ) EU Country/Region Code and Country/Region code ( ) EU Intrastat Code and Intrastat Code ( ) EU Intrastat Code and Country/Region Code ( ) Intrastat Code and EU Country/Region Code 5. In the Intrastat journal batches, how are statistics periods entered? ( ) MMYY ( ) YYMM ( ) YYDDMM ( ) DDMMYY 1-16

37 Test Your Knowledge Solutions Module 1: Intrastat Module Review and Takeaways 1. Which setup requirement for Intrastat includes seven predefined one-digit codes? ( ) Tariff Numbers ( ) Transaction Types ( ) Transport Methods ( ) Transaction Specifications 2. Where are Tariff Numbers specified after setup? ( ) On the Foreign Trade FastTab of each item. ( ) On the Foreign Trade FastTab of each customer. ( ) On the Foreign Trade FastTab of each vendor. ( ) On the Foreign Trade FastTab of each sales or purchase document. 3. Which of the following is not required to be set up to accurately report Intrastat? ( ) Tariff Numbers ( ) Transport Methods ( ) Transaction Types ( ) Transaction Specifications 4. If business is performed with EU countries/regions, what must be set up on the related ( ) EU Country/Region Code and Country/Region code ( ) EU Intrastat Code and Intrastat Code ( ) EU Intrastat Code and Country/Region Code ( ) Intrastat Code and EU Country/Region Code 1-17

38 Finance Advanced in Microsoft Dynamics NAV In the Intrastat journal batches, how are statistics periods entered? ( ) MMYY ( ) YYMM ( ) YYDDMM ( ) DDMMYY 1-18

39 MODULE 2: VAT RATE CHANGE TOOL Module Overview With the VAT Rate Change tool in Microsoft Dynamics NAV 2013, you can perform VAT and general posting group conversions. The tool enables you to easily change VAT rates to maintain accurate VAT reporting. Countries can apply VAT rate changes for different reasons. A higher VAT rate can be a fiscal measure to increase the earnings of a country. Lowering the VAT rate on the other hand is, in most cases, a measure to boost economics. The new VAT rate always applies from a specific date forward. This means that from that date forward, the new VAT rate should be used in documents and journals. The VAT rate change process consists of the following steps: FIGURE 2.1: VAT RATE CHANGE PROCESS Objectives The objectives are: Explain and demonstrate the preparation of the VAT rate change process. Explain and set up the VAT rate change tool. Explain and demonstrate how to perform a VAT rate change. 2-1

40 Finance Advanced in Microsoft Dynamics NAV 2013 Prepare for VAT Rate Change Tool Before you set up the VAT rate change tool, make the following preparations: 1. Create new posting groups. 2. Separate different VAT rates into different groups. 3. Reduce the number of documents that are converted. 4. Back up data. Create New Posting Groups Microsoft Dynamics NAV 2013 calculates VAT by combining the VAT business posting group and the VAT product posting group. When a VAT rate changes, a new VAT product posting group is required to set up the new VAT rate in the VAT posting setup. The general product posting group codes determine posting according to the type of item and resource being purchased or sold. To update master data such as items and resources, you must create a new general product posting group. Note: If you use a specific G/L account per VAT rate, you must also create new G/L accounts for the new VAT rate to post purchase, sales, and reverse charge VAT. Demonstration: Create New Posting Groups for a VAT Rate Change Scenario: Phyllis, the accounting manager at CRONUS International Ltd., has to set up new posting groups because of a VAT rate change. The government increased the VAT rate of 25% to 26% for entertainment expenses. To make sure that she can run the VAT rate change process, she follows these setup steps: Create a new VAT product posting group: VAT26. Create new G/L accounts to post purchase, sales, and reverse charge VAT. Create the VAT posting setup for the new VAT product posting group. Create a new general product posting group: MISC26. Create the general posting setup for the new general product posting group. 2-2

41 Demonstration Steps Module 2: VAT Rate Change Tool 1. Create the new VAT product posting group. a. In the Search box, type "VAT product posting group" and select the related link. b. In the Home tab on the ribbon, click New. c. In the Code field, type "VAT26". d. In the Description field, type Miscellaneous with 26 % VAT. e. Click OK. 2. Create new G/L accounts to post purchase, sales, and reverse charge VAT. a. In the Search box, type "Chart of accounts", and select the related link. b. In the Home tab on the ribbon, click New. c. In the No. field, type "5612". d. In the Name field, type Sales VAT 26%. e. In the Income/Balance field, select Balance Sheet. f. Clear the Direct Posting check box. g. Press Ctrl+N. h. In the No. field, type "5632". i. In the Name field, type Purchase VAT 26%. j. In the Income/Balance field, select Balance Sheet. k. Clear the Direct Posting check box. l. Press Ctrl+N. m. In the No. field, type "5622". n. In the Name field, type Purchase VAT 26% EU. o. In the Income/Balance field, select Balance Sheet. p. Clear the Direct Posting check box. q. Click OK three times. r. In the Home tab on the ribbon, click Indent Chart of Accounts. s. Click Yes to accept the update of the indentation of the G/L accounts. 3. Create the VAT posting setup for the new VAT product posting group. a. In the Search box, type "VAT posting setup", and select the related link. b. In the Home tab on the ribbon, click New. c. In the General FastTab, leave the VAT Business Posting Group field blank. 2-3

42 Finance Advanced in Microsoft Dynamics NAV 2013 d. In the VAT Product Posting Group field, select VAT26. e. In the VAT Calculation Type, click Normal VAT. f. In the VAT % field, type "0". g. In the VAT Identifier field, enter VAT26. h. Press Ctrl+N. i. In the General FastTab, in the VAT Business Posting Group field, select NATIONAL. j. In the VAT Product Posting Group field, enter VAT26. k. In the VAT Calculation Type, select Normal VAT. l. In the VAT % field, type "26". m. In the VAT Identifier field, enter VAT26. n. On the Sales FastTab, in the Sales VAT Account, type "5612". o. On the Purchase FastTab, in the Purchase VAT Account, type "5632". p. Press Ctrl+N. q. In the General FastTab, in the VAT Business Posting Group field, select EU. r. In the VAT Product Posting Group field, enter VAT26. s. In the VAT Calculation Type, select Reverse Charge VAT. t. In the VAT % field, type "26". u. In the VAT Identifier field, enter VAT26. v. On the Sales FastTab, in the Sales VAT Account, type "5612". w. On the Purchase FastTab, in the Purchase VAT Account, type "5632". x. In the Reverse Chrg. VAT Acc., type "5622". y. Press Ctrl+N. z. In the General FastTab, in the VAT Business Posting Group field, select EXPORT. aa. In the VAT Product Posting Group field, enter VAT26. bb. In the VAT Calculation Type, select Normal VAT. cc. In the VAT % field, enter 0. dd. In the VAT Identifier field, enter VAT26. ee. On the Sales FastTab, in the Sales VAT Account, type "5612". ff. On the Purchase FastTab, in the Purchase VAT Account, type "5632". gg. Click OK four times. 2-4

43 Module 2: VAT Rate Change Tool 4. Create a new general product posting group: MISC26. a. In the Search box, type "Gen. product posting groups", and select the related link. b. In the Home tab on the ribbon, click New. c. In the Code field, type "MISC26". d. In the Description field, type Miscellaneous with 26% VAT. e. In the Def. VAT Prod. Posting Group field, select VAT26. f. Click OK. g. Click Yes on the warnings. 5. Create the general posting setup for the new general product posting group. a. In the Search box, type "General posting setup", and select the related link. b. In the Home tab on the ribbon, click New. c. In the General FastTab, leave the Gen. Bus. Posting Group field blank. d. In the Gen. Prod. Posting Group field, select MISC26. e. Press Ctrl+N. f. In the General FastTab, in the Gen. Bus. Posting Group field, select NATIONAL. g. In the Gen. Prod. Posting Group field, select MISC26. h. Press Ctrl+N. i. In the General FastTab, in the Gen. Bus. Posting Group field, select EU. j. In the Gen. Prod. Posting Group field, select MISC26. k. Click OK three times. Note: Because the new VAT rate only applies to entertainment expenses, you do not have to assign sales, purchase, or inventory G/L accounts in the general posting setup. Separate VAT Rates into Different Groups If you have transactions that use different rates, than they must be separated into different groups either by creating new general ledger accounts for each rate or by using data filters to group transactions according to rate. With different types of transactions posted on a single G/L account, after a VAT rate change, different VAT rates may be used for one G/L account. This means that users have to change the VAT product posting group on the journal line or document line before posting. 2-5

44 Finance Advanced in Microsoft Dynamics NAV 2013 When you create new G/L accounts per VAT rate, this is not necessary. Reduce the Number of Documents that Are Converted To reduce the number of documents that are converted, post as many documents as possible and reduce unposted documents to a minimum. When you follow this step, you must consider the capabilities of the VAT rate change tool. Sales Orders If an order is fully or partially shipped, the shipped items keep the current general product posting group and VAT product posting group. The system creates a new order line for the unshipped items. This new order line is updated to align current and new VAT or general product posting groups. In addition, item charge assignments, reservations, and item-tracking information are updated accordingly. Purchase Orders This is similar as sales orders, but for received or partially received purchase orders. Prepayments Documents that have posted prepayment invoices are not converted by the VAT rate change tool. Therefore, there might be a difference between the VAT that is due and the VAT that was paid in the prepayments when the invoice is completed. The VAT rate change tool skips these documents, and you have to manually update them. Best Practice: You must either finalize the orders with prepayment invoices, or post prepayment credit memos. Drop Shipments and Special Orders Drop shipments and special orders are not converted by the VAT rate change tool. Warehousing Sales or purchase orders with warehouse integration are not converted by the VAT rate change tool if they are partially shipped or received. 2-6

45 Service Contracts Module 2: VAT Rate Change Tool Service contracts are not converted by the VAT rate change tool. Back Up Data The last step in the preparation of the VAT rate change process is to back up the data. More information on the back up of date is covered in the course Installation and Configuration in Microsoft Dynamics NAV Set Up Using VAT Rate Change Tool In the VAT Rate Change Setup window, you specify the master data, journals, and documents to be converted to the new VAT rate. For the data to which the new VAT rate applies, you can update the VAT product posting group, the general product posting group, or both. For master data, you can apply filters when not all data needs a VAT rate update. The four FastTabs on the VAT Rate Change Setup window are as follows: General Master Data Journals Documents General FastTab In the General FastTab, you can set up following fields: VAT Rate Change Tool Completed use this field to specify if the VAT rate change conversion is completed. If this field is selected and you want to perform multiple conversions, an error message appears. Clear the check box to perform multiple conversions. Perform Conversion select this field if you want to perform the VAT rate conversion. Clear this check box to run a test conversion. 2-7

46 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 2.2: VAT RATE CHANGE SETUP WINDOW GENERAL FASTTAB Master Data FastTab On the Master Data FastTab, you specify how you want to perform VAT and general posting group conversions for master data. For master data, the VAT rate change tool can affect the VAT product posting group and the general product posting group. Depending on the type of master data, you can update one or both of these posting groups. For the following master data, you can update both the VAT product posting group and the general posting group: G/L Accounts Items Resources Item Categories Item Charges 2-8

47 You can select one of the following options: Module 2: VAT Rate Change Tool VAT Product Posting Group the selected field is updated by the VAT product posting group conversion. Gen. Prod. Posting Group - the selected field is updated by the general product posting group conversion. Both - the selected field is updated by both the VAT and the general product posting group conversions. No the selected field is not updated. For the following master data, you can update the general product posting group: Service Price Adjustment Detail Work Centers Machine Centers You can select one of the following options: Gen. Prod. Posting Group - the selected field is updated by the general product posting group conversion. No the selected field is not updated. Finally, you can update the VAT product posting group for the general product posting group. You do this based on the old VAT product posting group. Microsoft Dynamics NAV updates the general product posting groups that have the old VAT product posting group by default. 2-9

48 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 2.3: VAT RATE CHANGE SETUP WINDOW MASTER DATA FASTTAB Journals FastTab On the Journals FastTab, you specify how you want to perform VAT and general posting group conversions for journals. For journals, the VAT rate change tool can affect the VAT product posting group and the general product posting group. Depending on the type of journal, you can update one or both of these posting groups. For the following journals, you can update both the VAT product posting group and the general posting group: General journals General journal allocations Standard general journal lines You can select one of the following options: VAT Product Posting Group the selected field is updated by the VAT product posting group conversion. Gen. Prod. Posting Group - the selected field is updated by the general product posting group conversion. Both - the selected field is updated by both the VAT and the general product posting group conversions. No the selected field is not updated. 2-10

49 Module 2: VAT Rate Change Tool For the following journals, you can update the general product posting group: Resource journals Job journals Requisition lines Standard item journal lines You can select one of the following options: Gen. Prod. Posting Group - the selected field is updated by the general product posting group conversion. No the selected field is not updated. FIGURE 2.4: VAT RATE CHANGE SETUP JOURNALS FASTTAB Documents FastTab On the Documents FastTab, you specify how you want to perform VAT and general posting group conversions for documents. For documents, the VAT rate change tool can affect the VAT product posting group and the general product posting group. Depending on the type of document, you can update one or both of these posting groups. 2-11

50 Finance Advanced in Microsoft Dynamics NAV 2013 For the following documents, you can update both the VAT posting group and the general posting group: Sales documents Purchase documents Service documents You can select one of the following options: VAT Product Posting Group the selected field is updated by the VAT product posting group conversion. Gen. Prod. Posting Group - the selected field is updated by the general product posting group conversion. Both - the selected field is updated by both the VAT and the general product posting group conversions. No the selected field is not updated. If you select the Ignore Status on Sales Docs or Ignore Status on Purchase Docs check boxes, all the existing documents are updated regardless of the status. This includes documents that have a status of released. For the following documents, you can update the VAT product posting group: Reminders Finance charge memos You can select one of the following options: VAT Prod. Posting Group - the selected field is updated by the VAT product posting group conversion. No the selected field is not updated. 2-12

51 Module 2: VAT Rate Change Tool Finally, for production orders, you can select to update the general product posting group. FIGURE 2.5: VAT RATE CHANGE SETUP DOCUMENTS FASTTAB Perform VAT Rate Conversions After the preparation and the setup are finished, you can perform the VAT rate conversion. You must specify the new product posting groups for the new VAT rate. Before you perform the actual conversion, you can first run a test conversion. The test conversion creates VAT rate change log entries that you can use to check on the result of the conversion. Product Posting Group Conversion Before you can run the VAT rate change conversion, you must link the new product posting groups to the current ones. By doing this, you define which old product posting group should be converted to which new product posting group. You can do this for both the general product posting group and the VAT product posting group. 2-13

52 Finance Advanced in Microsoft Dynamics NAV 2013 To link VAT product posting groups, follow these steps: 1. In the Search box, enter VAT Rate Change Setup and then select the related link. 2. In the Home tab on the ribbon, click VAT Prod. Posting Group Conv. 3. In the From Code field, select the current VAT product posting group. 4. In the To Code field, select the new VAT product posting group. 5. Click OK. To link general product posting groups, follow these steps: 1. In the Search box, enter VAT Rate Change Setup and then select the related link. 2. In the Home tab on the ribbon, click Gen. Prod. Posting Group Conv. 3. In the From Code field, select the current general product posting group. 4. In the To Code field, select the new general product posting group. 5. Click OK. FIGURE 2.6: VAT PROD. POSTING GROUP CONV. WINDOW 2-14

53 VAT Rate Change Test Conversion Module 2: VAT Rate Change Tool To perform a VAT rate change test conversion, follow these steps: 1. In the Search box, enter VAT Rate Change Setup and then select the related link. 2. Verify that you have already set up the VAT product posting group conversion or the general product posting group conversion. 3. Clear the Perform Conversion check box. 4. Verify that the VAT Rate Change Tool Completed check box is cleared. 5. On the Home tab on the ribbon, click Convert. A test conversion does not change the selected master data, journals, or documents. Click the VAT Rate Change Log Entries on the ribbon to view the result of the test conversion. FIGURE 2.7: VAT RATE CHANGE LOG ENTRIES WINDOW 2-15

54 Finance Advanced in Microsoft Dynamics NAV 2013 VAT Rate Change Conversion After you verify the test conversion, you can run the VAT rate change conversion as follows: 1. In the Search box, type "VAT Rate Change Setup" and then select the related link. 2. Verify that you have already set up the VAT product posting group conversion or the general product posting group conversion. 3. Select the Perform Conversion check box. Note: Verify that the VAT Rate Change Tool Completed check box is cleared. The check box is automatically selected when the VAT rate change conversion is completed. 4. In the Home tab on the ribbon, click Convert. You can view the result of the conversion by clicking VAT Rate Change Log Entries to view the results of the conversion. The selected master data, journals, and documents are also updated with the new product posting groups. Demonstration: VAT Rate Change Conversion Scenario: After Phyllis, the account manager of CRONUS International Ltd., prepares the VAT rate change setup for entertainment expenses, she realizes that the new VAT rate of 26% also applies to loudspeaker range items. She sets up the following master data for VAT rate change conversion: G/L accounts: 8420 Items: LS-100 to LS-81 She also wants to update sales and purchase documents. There are no journals to update. Before she runs the actual VAT rate change conversion, Phyllis first runs a test conversion. After she runs the conversion, she checks following data: G/L Account 8420 Item LS-100 Sales Order

55 Module 2: VAT Rate Change Tool Note: To successfully perform this demonstration, you must complete the previous demonstration, "Create New Posting Groups for a VAT Rate Change." Demonstration Steps 1. Set up the product posting group conversion. a. In the Search box, type "VAT Rate Change Setup", and select the related link. b. In the Home tab on the ribbon, click VAT Prod. Posting Group Conv. c. In the From Code field, type "VAT25". d. In the To Code field, type "VAT26". e. Click OK. f. In the Home tab on the ribbon, click Gen. Prod. Posting Group Conv. g. In the From Code field, type "MISC". h. In the To Code field, type "MISC26". i. Click OK. 2. Select the master data to convert, exclude the journals from conversion, and select the sales and purchase documents to convert. a. In the Search box, type "VAT Rate Change Setup", and select the related link. b. In the Master Data FastTab, in the Update G/L Accounts field, select Both. c. In the Account Filter field, type "8420". d. In the Update Items field, select Both. e. In the Item Filter field, type "LS-100..LS-81". f. Select No for the following fields: Update Resources Update Item Categories Update Item Charges Update Gen. Prod. Posting Groups Update Serv. Price Adj. Detail Update Work Centers Update Machine Centers g. In the Journals FastTab, select No for all the fields. h. In the Documents FastTab, in the Update Sales Documents field, select Both. 2-17

56 Finance Advanced in Microsoft Dynamics NAV 2013 i. Select the Ignore Status on Sales Docs check box. j. In the Update Purchase Documents field, select Both. k. Select the Ignore Status on Purchase Docs check box. l. Select No in the remaining fields 3. Run the test conversion and check the result of the test conversion. a. Verify that the VAT Rate Change Tool Completed and Perform Conversion fields are cleared. b. In the Home tab on the ribbon, click Convert. c. In the Home tab, click VAT Rate Change Log Entries. Notice that only the filtered G/L accounts and items are included in this overview. The suggested Sales and purchase lines contain only G/L accounts and items that are filtered in the Master Data FastTab. 4. Perform the VAT rate change conversion and check the log entries. a. Close the VAT Rate Change Log Entries window to return to the VAT rate change setup. b. Verify that the VAT Rate Change Tool Completed field is cleared. c. Select the Perform Conversion field. d. In the Home tab on the ribbon, click Convert. Notice that now the VAT Rate Change Tool Completed field is selected automatically. To check the result, follow these steps: e. In the Home tab, click VAT Rate Change Log Entries. The Description field is now blank, the Converted field is selected, and the Converted Date field contains a date. 5. Check G/L account 8420, check item LS-100, and check sales order a. In the Search box, enter Chart of Accounts, and select the related link. b. Scroll to G/L account 8420, and double-click to open the G/L Account Card. c. Open the Posting FastTab. 2-18

57 Module 2: VAT Rate Change Tool Notice that the general ledger posting group and the VAT posting group contain the new values. FIGURE 2.8: G/L ACCOUNT CARD a. Click OK to close the G/L Account Card. b. In the Search box, type "Items", and then select the related link. c. Press Ctrl+F, and verify that Description is selected in the Find Row Where field. d. In the Matches field, type "100W", press Enter, and then click Close. e. Double-click item LS-100, and open the Invoicing FastTab. Notice that the VAT Product Posting Group now contains VAT26. f. Click OK to close the item card. g. In the Search box, enter Sales Orders and then click the related link. h. Scroll to sales order , and double-click to open the sales order. Note: To verify the new VAT rate, use the Choose Columns function to add the VAT Product Posting Group field to the sales lines. 2-19

58 Finance Advanced in Microsoft Dynamics NAV 2013 The items on this sales order are included in the item filter in the VAT Rate Change Setup window. Therefore, both sales lines now contain the VAT product posting group VAT26. FIGURE 2.9: SALES ORDER WINDOW i. Click OK to close the Sales Order window. 2-20

59 Module Review Module 2: VAT Rate Change Tool Module Review and Takeaways The VAT rate change tool in Microsoft Dynamics NAV 2013 enables you to convert to new VAT rates in the most efficient way. You can use the tool when countries increase or reduce a VAT rate for different reasons. After the preparation, you can set up the tool by choosing which master data, journals, and documents should be converted. By using master data filters, you can include only the master data that is subject to the VAT rate change. Before you run the actual conversion, you can perform a test run. After you run the VAT rate change tool, master data, journals, and documents are updated with new VAT product posting groups and general product posting groups. Test Your Knowledge Test your knowledge with the following questions. 1. Which of the following posting groups can you update in the VAT rate change process? ( ) VAT business posting group and VAT product posting group. ( ) General business posting group and general product posting group. ( ) General product posting group and VAT product posting group. ( ) General business posting group and VAT business posting group. ( ) General business posting group and VAT product posting group. 2-21

60 Finance Advanced in Microsoft Dynamics NAV What is true about prepayment invoices in relation to the VAT rate change tool? ( ) The system creates credit memos for the posted prepayment invoices and converts them to the new VAT rate. ( ) The system adds lines to the posted prepayment invoices with the difference between the old and new VAT rate. ( ) Documents that have posted prepayment invoices are not converted by the VAT rate change tool. ( ) Only non-posted prepayment invoices are converted by the VAT rate change tool. 3. Which type of master data cannot be set up in the VAT Rate Change Setup window? ( ) Resources ( ) Fixed Assets ( ) Work Centers ( ) Items ( ) Item Charges 4. Which of the following is the result of a VAT rate change test conversion? ( ) The VAT Rate Change Test Conversion report. ( ) Non-posted journal lines with the old and new product posting groups. ( ) There is no result. Only a message that states if the test conversion ran successfully. ( ) VAT rate change log entries. 2-22

61 Module 2: VAT Rate Change Tool 5. What is true about the VAT Rate Change Tool Completed field in the General FastTab of the VAT Rate Change Setup window? ( ) It is a non-editable field, automatically selected when the VAT rate change conversion is completed. ( ) It is an editable field, automatically selected when the VAT rate change conversion is completed. ( ) The user must select this field after the VAT rate change conversion is completed. ( ) Only when this field is selected, the VAT rate changes are applied to the master data, journals, and documents. 2-23

62 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Solutions Module Review and Takeaways 1. Which of the following posting groups can you update in the VAT rate change process? ( ) VAT business posting group and VAT product posting group. ( ) General business posting group and general product posting group. ( ) General product posting group and VAT product posting group. ( ) General business posting group and VAT business posting group. ( ) General business posting group and VAT product posting group. 2. What is true about prepayment invoices in relation to the VAT rate change tool? ( ) The system creates credit memos for the posted prepayment invoices and converts them to the new VAT rate. ( ) The system adds lines to the posted prepayment invoices with the difference between the old and new VAT rate. ( ) Documents that have posted prepayment invoices are not converted by the VAT rate change tool. ( ) Only non-posted prepayment invoices are converted by the VAT rate change tool. 3. Which type of master data cannot be set up in the VAT Rate Change Setup window? ( ) Resources ( ) Fixed Assets ( ) Work Centers ( ) Items ( ) Item Charges 2-24

63 Module 2: VAT Rate Change Tool 4. Which of the following is the result of a VAT rate change test conversion? ( ) The VAT Rate Change Test Conversion report. ( ) Non-posted journal lines with the old and new product posting groups. ( ) There is no result. Only a message that states if the test conversion ran successfully. ( ) VAT rate change log entries. 5. What is true about the VAT Rate Change Tool Completed field in the General FastTab of the VAT Rate Change Setup window? ( ) It is a non-editable field, automatically selected when the VAT rate change conversion is completed. ( ) It is an editable field, automatically selected when the VAT rate change conversion is completed. ( ) The user must select this field after the VAT rate change conversion is completed. ( ) Only when this field is selected, the VAT rate changes are applied to the master data, journals, and documents. 2-25

64 Finance Advanced in Microsoft Dynamics NAV

65 MODULE 3: MULTICURRENCY Module Overview In today's global economy, many companies have to report results and process activity using multiple currencies. Microsoft Dynamics NAV 2013 provides functionality that helps companies post and correctly valuate transactions in multiple currencies, display general ledger results in an additional reporting currency, and consolidate companies that use different currencies. Becoming familiar with these features lets businesses streamline their ability to work with multiple currencies in a global market. Objectives The objectives are: Explain setup requirements for currencies and exchange rates when using multiple currencies. Explain setup requirements using multiple currencies with customers, vendors, and bank accounts. Describe steps and additional functionality for processing purchase and sales documents that use foreign currency. Describe steps and additional functionality for recording and posting multicurrency transactions in the cash receipts journal. Describe how to process multicurrency payments using the payments journal. Describe how to run the Adjust Exchange Rates batch job for customers, vendors, and bank accounts. Explain set up, viewing amounts, daily processing, and periodic processes when using an additional reporting currency. Describe how to run the Adjust Exchange Rates batch job for G/L accounts. Describe how to view the Exchange Rate Adjustment Register. 3-1

66 Finance Advanced in Microsoft Dynamics NAV 2013 Currency Card and Currency Exchange Rates Companies complete the initial setup for multicurrency functionality in Microsoft Dynamics NAV 2013 by using the Currency Card and Currency Exchange Rates pages. The Currency Card is where the basic parameters for the various currencies used by a company are established. The Currency Exchange Rate page is used to set up the exchange rates for a selected currency on specific dates. Currency Card Each currency has a Currency Card page. All currency cards are listed on the Currencies page. To open the Currencies and Currency Card pages, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Finance > Currencies. 4. Select the desired currency, for example USD, and then click Edit to open the Currency Card page. FIGURE 3.1: CURRENCIES PAGE AND CURRENCY CARD WINDOW 3-2

67 Module 3: Multicurrency The information on the currency card is organized on a series of FastTabs. The setup involves the following: Providing basic information about the currency, including accounts that are used for posting unrealized and realized gains and losses. Indicating rules for rounding amounts, invoices, and unit amounts for multicurrency transactions. Selecting accounts for posting realized gains and losses when an additional reporting currency is implemented. General FastTab The General FastTab contains the following fields: Code - displays unique identifier for the currency. Description - provides short description of the currency. Unrealized Gains Acc. & Unrealized Losses Acc. - displays G/L account number that is used to post unrealized exchange rate gains or losses when the Adjust Exchange Rates batch job is run to adjust customers, vendors, and bank accounts. Realized Gains Acc. & Realized Losses Acc.- displays G/L account that is used to post realized exchange rate gains or losses when the customer or vendor ledger entry is applied. If an unrealized gain or loss was previously posted, the entry is reversed when the realized gain or loss is posted. EMU Currency - when selected, indicates that currency is an Economic and Monetary Union currency. Last Date Modified - automatically populated. Displays when last changes were made to the fields for the currency. Last Date Adjusted - automatically populated. Displays when the Adjust Exchange Rates batch job was last run. Payment Tolerance % - indicates percentage a payment or refund can vary from the amount on a credit memo or invoice. Update the field by selecting Change Payment Tolerance. Max. Payment Tolerance Amount - indicates maximum amount that a payment or refund can vary from the amount on a credit memo or invoice. Update the field by selecting Change Payment Tolerance. Note: Payment Tolerance is covered in detail in the course Finance Essentials for Microsoft Dynamics NAV

68 Finance Advanced in Microsoft Dynamics NAV 2013 Rounding FastTab The Rounding FastTab contains the following fields: Invoice Rounding Precision - specifies the rounding precision used for this currency on invoices. For example, invoices may be rounded to the nearest whole number. Invoice Rounding Type - determines the rounding method that is used for invoices. The options are Nearest, Up, or Down. This field works with the Invoice Rounding Precision field. Amount Rounding Precision - specifies the rounding precision used for the currency. Amount Decimal Places - specifies the number of decimal places displayed for the currency. The minimum and maximum number of decimal places are separated by a colon. Unit-Amount Rounding Precision - specifies the rounding precision used for unit prices for items on sales and purchase invoices. Unit-Amount Decimal Places - identifies the minimum and maximum number of decimal places used for the sales and purchase price of items and sales price of resources. The minimum and maximum number of decimal places are separated by a colon, for example 2:5. Appln. Rounding Precision - specifies the amount allowed for rounding differences when a payment entry in one currency is applied to entries in a different currency. Conv. LCY Rndg. Debit Acc. - identifies the debit account to use for rounding differences when the Insert Conv. LCY Rndg. Lines function is used in a general journal. Conv. LCY Rndg. Credit Acc. - identifies the credit account to use for rounding differences when the Insert Conv. LCY Rndg. Lines function is used in a general journal. Max. VAT Difference Allowed - identifies the maximum VAT correction amount allowed for the currency. VAT Rounding Type - determines how VAT is rounded for the currency. The options are Nearest, Up, or Down. 3-4

69 Reporting FastTab Module 3: Multicurrency The Reporting FastTab contains the following fields: Realized G/L Gains Account & Realized G/L Losses Account - specifies the G/L account that is used to post exchange rate gains or losses for currency adjustments between the local currency (LCY) and the additional reporting currency. The exchange rate gains are calculated when the Adjust Exchange Rates batch job is run to adjust general ledger accounts. Residual Gains Account & Residual Losses Account - indicates the G/L account that is used to post residual gain or loss amounts (rounding differences) when an additional reporting currency is used in the general ledger application area. Currency Exchange Rates Currency exchange rates are constantly fluctuating. The Currency Exchange Rates page is used to do the following: Record exchange rates. View prior entries for exchange rates. To open the Currency Exchange Rates page from the Currency Card page, on the Home tab in the ribbon click Exch. Rates. FIGURE 3.2: CURRENCY EXCHANGE RATES WINDOW When you post transactions, you can obtain the current exchange rates for the various currencies from the Currency Exchange Rates page. In addition, use data in the table to calculate unrealized gains or losses caused by exchange rate fluctuations as follows: 3-5

70 Finance Advanced in Microsoft Dynamics NAV 2013 When you run the Adjust Exchange Rates batch job to revalue previously posted transactions. When you perform consolidations of foreign subsidiaries that use currencies other than the parent's currency. This table is frequently updated, possibly daily, to reflect current exchange rates for transactions. The Currency Exchange Rates page includes the following fields: Starting Date - identifies the effective date to use for the exchange rate. Enter a new line with a new Starting Date for each effective date. Currency Code - identifies the code for the selected currency. Relational Currency Code - identifies currency to use. To specify local currency, leave the field blank. Exchange Rate Amount - identifies the rate to use for the currency selected on the line. Use the Exchange Rate Amount and Relational Exch. Rate Amount fields when recording transactions. The entries in the fields tell the system how to calculate amounts for the selected currency. Relational Exch. Rate Amount - indicates the rate to use for the currency selected in the Relational Currency Code field. If the field is blank, it is the local currency. Use the Exchange Rate Amount and Relational Exch. Rate Amount fields when recording transactions. The entries in the fields tell the system how to calculate amounts for the selected currency. Note: In the USD example, read the columns as follows: (Relational Exch. Rate Amount) LCY (Relational Currency Code) = 100 (Exchange Rate Amount) USD (Currency Code) Adjustment Exch. Rate Amount - indicates the rate to use for the currency selected on the line. Use the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields when you run the Adjust Exchange Rates batch job. Relational Adjmt. Exch. Rate Amount - indicates the rate to use for the currency selected in the Relational Currency Code field. If the field is blank, it is the local currency. Use the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields when you run the Adjust Exchange Rates batch job. Fix Exchange Rate Amount - determines whether the currency or relational currency exchange rates suggested on invoices, journal lines, and batch jobs are fixed or editable. When a selection is made 3-6

71 Module 3: Multicurrency in this field, that selection is fixed (not editable). The options are Currency, Relational Currency, or Both. Exchange Rates Approaches To enter and maintain the different exchange rates, different approaches can be used, depending on the frequency with which your company uses foreign currencies and deals with the exchange rate adjustments: For each new exchange rate, a new line can be entered on the Currency Exchange Rates page, each with a different start date. In this case, make sure that the Relational Exch. Rate Amount and the Relational Adjmt Exch. Rate Amt. fields are equal, in addition to the Exchange Rate Amount and the Adjustment Exch. Rate Amount fields. You can use different exchange rates in the Relational Exch. Rate Amount and the Relational Adjmt Exch. Rate Amt. fields. This gives you flexibility in the exchange rate setup. For example, you can update the Relational Exch. Rate Amount field daily, while updating the Relational Adjmt Exch. Rate Amt. field at the end of each month. Another possibility is to use exchange rates from one source for adjustments and from another source for the default transaction exchange rate. For example, use the exchange rates according to the local rates for the Relational Exch. Rate Amount and use a government-approved bank s exchange rates for the Relational Adjmt. Exch. Rate Amt.. Companies that use foreign currencies only occasionally might not have to update the currency exchange rates. Therefore, the appropriate exchange rate can be when users enter the sales and purchase documents and when entering customer or vendor payments in the general journals. In this case, make sure that the Fix Exchange Rate Amount field does not contain the option Both. Note: When exchange rates are adjusted regularly, we recommend that you add new currency exchange rate lines on the Currency Exchange Rates page. This makes sure documents and journals are created using current exchange rates. Additionally, we recommend that existing entries are not overwritten or deleted from the Currency Exchange Rates page. Keeping history in this page enables traceability of exchange rate adjustments for a particular currency over time. If there is a currency that is used as an additional reporting currency, the entries for that currency in the Currency Exchange Rates page must not be overwritten. 3-7

72 Finance Advanced in Microsoft Dynamics NAV 2013 Set Up Multicurrency for Customers, Vendors, and Bank Accounts Multiple steps are necessary to complete the setup in Microsoft Dynamics NAV 2013 to appropriately handle multicurrency transactions involving customers, vendors, and bank accounts. Before processing transactions for customers, vendors, and bank accounts that use default currencies other than the local currency, you must perform the required setup. This includes establishing the following: Parameters for rounding. Rules governing when applications can be applied between currencies. Default currencies for customers, vendors, and bank accounts. Currency Card and Currency Exchange Rates To prepare a company to work with multicurrency, first set up the Currency Card and the Currency Exchange Rates for all customers, vendors, and bank accounts. On the Currency Exchange Rates page, be aware of the following: Use the values in the Exchange Rate Amount and Relational Exch. Rate Amount fields to record the initial amounts for multicurrency transactions. The Adjust Exchange Rates batch job uses the values in the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields. The batch job is run periodically to calculate gains or losses on open entries caused by currency fluctuations. General Ledger Setup The General Ledger Setup page contains fields related to how rounding differences are managed by Microsoft Dynamics NAV To open the General Ledger Setup page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Finance > General Ledger Setup. 3-8

73 Module 3: Multicurrency FIGURE 3.3: GENERAL LEDGER SETUP WINDOW 4. Expand the General FastTab. o o o LCY Code - specifies the local currency. It is a text field and not related to the Currencies table. Inv. Rounding Precision (LCY) - identifies the rounding precision used for the local currency on invoices. For example, invoices may be rounded to the nearest whole number. Inv. Rounding Type (LCY) - determines the rounding method that is used for invoices for the local currency. The options are Nearest, Up, or Down. This field works with the Invoice Rounding Precision field. 5. Expand the Application FastTab. o Appln. Rounding Precision field determines the rounding precision when entries that are using different currencies apply to one another. 3-9

74 Finance Advanced in Microsoft Dynamics NAV 2013 Note: The currency of the entry that is applied to one or more other entries determines the interval for rounding differences. The rounding difference is only calculated and posted when the entry that is applied is a payment entry. Rounding differences are posted to the Debit Curr. Appln. Rndg. Acc. or Credit Curr. Appln. Rndg. Acc. fields specified on the Vendor Posting Group or Customer Posting Group pages. Sales & Receivables Setup and Purchases & Payables Setup As soon as the General Ledger Setup page is completed, you can set up the Invoice Rounding and Appln. Between Currencies fields in both the Sales & Receivables Setup and Purchases & Payables Setup pages. To open the Sales & Receivables Setup and Purchases & Payables Setup pages, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Finance > Sales & Receivables Setup or Purchases & Payables Setup. FIGURE 3.4: SALES & RECEIVABLES SETUP WINDOW 3-10

75 4. Expand the General FastTab. o Module 3: Multicurrency Invoice Rounding Select this check box if you want to use rounding for sales or purchase invoices for LCY. The rounding process for LCY uses the settings in the Inv. Rounding Precision (LCY) and Inv. Rounding Type (LCY) fields on the General FastTab of the General Ledger Setup page. o Appln. Between Currencies Use the selection to allow application between currencies in the following scenarios: When any customer or vendor uses more than one currency. When any cash receipts or payments are recorded in a currency other than the original invoice currency. The options are as follows: None: All entries used in an application must be in the same currency. EMU: Entries in the Euro and an old national currency apply to one another. All: Entries in any currency apply to one another. When EMU or All is selected in the Appln. Between Currencies field, the rounding precision is determined from the entry in the Appln. Rounding Precision field in the following locations: General Ledger Setup window for the local currency. Currency Card window for other currencies. Customer, Vendor, and Bank Account Cards The next step in the set up of multicurrency for customers, vendors, and bank accounts is to select the default currency in the Currency Code field on the account card. To set up the default currency for customers, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Receivables > Customers. 3. Select the desired customer, and then click Edit. 4. Expand the Foreign Trade FastTab. 3-11

76 Finance Advanced in Microsoft Dynamics NAV In the Currency Code field, enter the correct currency for the customer or leave blank to indicate LCY. 6. Click OK to close the Customer Card page. The process is the same for vendors and bank accounts. Process Sales and Purchase Documents As soon as multicurrency setup is complete, creating and posting sales or purchase documents by using multiple currencies is basically the same as creating and posting documents that use the local currency. However, during the process, Microsoft Dynamics NAV 2013 has additional functionality to support multicurrency. This includes the ability to do the following: Update the Currency Code when you enter documents. Edit the Currency Exchange Rate, depending on setup. Display amounts in both currencies in statistics windows. View posted amounts in both currencies. Demonstration: Process a Purchase Invoice Scenario: April, the accounts payable coordinator, recently added the Mundersand Corporation to the vendor listing for CRONUS International, Ltd. Mundersand uses the Canadian dollar (CAD) as its currency. April is processing the first purchase invoice for Mundersand for a single Side Panel, Item April plans to verify the accuracy of the exchange rate used for the invoice and to review the vendor ledger entries that result from posting the purchase invoice. April must record and post the invoice, and then review the posted activity. Demonstration Steps 1. Record and post the purchase invoice. a. On the navigation pane, click Departments. b. Click Financial Management, click Payables > Purchase Invoices. c. Click New. d. In the Buy-from Vendor No. field, click the drop-down list, and select , Mundersand Corporation. e. Press TAB or ENTER. f. Expand the Foreign Trade FastTab. g. Notice that the currency from the Vendor Card populates the Currency Code field. 3-12

77 2. Review the exchange rates. Module 3: Multicurrency a. In the Currency Code field, click the AssistEdit button to display the Change Exchange Rate page. For CAD, notice that the current exchange rate is This can be changed for this one purchase document. FIGURE 3.5: PURCHASE INVOICE CHANGE EXCHANGE RATE WINDOW b. Click OK to close the Change Exchange Rate page. Note: The fields that are editable in the Change Exchange Rate page are controlled by the selection made in the Fix Exchange Rate Amount field on the Currency Exchange Rates page. 1. Enter a line in the purchase invoice. a. Expand the Lines FastTab. b. In the Type field, enter Item. c. In the No. field, enter d. In the Quantity field, enter 1. e. Press TAB or ENTER. 3-13

78 Finance Advanced in Microsoft Dynamics NAV 2013 f. Make sure that in the Direct Unit Cost Excl. VAT field, the cost is listed as This is the cost of the item in CAD, the vendor's currency. The direct unit cost is calculated by using the Last Direct Cost from the Item Card of and dividing it by the Relational Exchange Rate of The calculated amount of is rounded according to the entry in the Unit Amount Rounding Precision field in the Currencies window for CAD. This results in a Direct Unit Cost Excluding VAT of Review the statistics and post the invoice. a. On the Home tab, click Statistics to display the Purchase Invoice Statistics page. The cost is displayed in both the foreign currency and the local currency. FIGURE 3.6: PURCHASE INVOICE STATISTICS b. Click OK to close the Purchase Invoice Statistics window. c. Expand the General FastTab. d. In the Vendor Invoice No. field, enter CUR1. e. On the Home tab, click Post. f. Click Yes to post the invoice. 3-14

79 3. Review the posted ledger entries. a. On the navigation pane, click Departments. Module 3: Multicurrency b. Click Financial Management > Payables > Vendors. c. Select vendor , Mundersand Corporation, and then click Edit. d. Notice that the amount in the Balance (LCY) field is e. On the Home tab, click Ledger Entries to display the Vendor Ledger Entries page. f. Notice that the amounts in the Original Amount, Amount, and Remaining Amount fields are displayed in CAD, the vendor's currency. g. Through the Choose Columns function, add the Original Amt. (LCY), Amount (LCY), and Remaining Amount (LCY) fields. h. On the Home tab, click Detailed Ledger Entries. Notice that amounts are displayed in both the vendor and the local currencies. i. Click Close to close the Detailed Vendor Ledg. Entries page. j. Click OK to close the Vendor Ledger Entries page. k. Click OK to close the Vendor Card page. 3-15

80 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 3.1: Process a Sales Invoice Currency Scenario You must create a sales invoice for Spotsmeyer Furnishing, Customer Spotsmeyer's Furnishings is set up with a Bill-to Customer. However, this invoice will be sent to the customer directly. The order consists of five Base Panels, Item Spotsmeyer's Furnishings uses U.S. dollar (USD) as its currency. The exchange rate as of 01/01/14 for 100 USD is Great Britain Pounds (GBP). Because this is the first transaction posted to Spotsmeyer's Furnishings, you plan to verify the multicurrency amount posted. You create a table calculating the expected posting as shown here. Last Direct Cost, per Item Card Exchange Rate Mathematical Operation LCY (GBP) * USD (40.30 /.5161) * Amount (LCY) Exercise 1: Process a Sales Invoice Task 1: Process a Sales Invoice High Level Steps 1. Update the Currency Exchange Rate. 2. Create a sales invoice. 3. Review the posted activity. Detailed Steps 1. Update the Currency Exchange Rate. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Currencies. c. Select currency code USD. d. On the Home tab, click Exch. Rates. e. On a new line, in the Starting Date field, enter 01/01/14. f. In the Relational Exch. Rate Amount field, enter g. In the Relational Adjmt. Exch. Rate Amt. field, enter h. Click OK to close the Currency Exchange Rates page. 3-16

81 2. Create a sales invoice. a. On the navigation pane, click Departments. Module 3: Multicurrency b. Click Financial Management > Receivables > Sales Invoices. c. Click New. d. In the Sell-to Customer No. field, enter e. Make sure that the Posting Date is 01/24/14. f. Expand the Invoicing FastTab. g. In the Bill-to Customer field, enter h. Expand the Foreign Trade FastTab, and then confirm the Currency Code field is set to USD. i. Expand the Lines FastTab. j. In the Type field, enter Item. k. In the No. field, enter l. In the Quantity field, enter 5. m. Notice the amount in the Line Amount Excl. VAT field. n. On the Home tab, click Statistics. o. Notice the amounts for Total Incl. VAT and Sales (LCY). p. Click OK to close the Sales Invoice Statistics page. q. On the Home tab, click Post. r. Click Yes to post the invoice. s. Click OK to close the Sales Invoice page. 3. Review the posted activity. a. In the navigation pane, click Departments. b. Click Financial Management, click Receivables > Customers. c. Select customer , and then click Edit. d. Note the amount in the Balance (LCY) field. e. On the Home tab, click Ledger Entries. f. On the customer ledger entries page, use the Choose Columns function to add the Original Amt. (LCY), Amount (LCY), and Remaining Amt. (LCY) fields. g. Notice the amounts in the fields on the line. h. Click OK to close the customer ledger entries page. i. Click OK to close the Customer Card page. 3-17

82 Finance Advanced in Microsoft Dynamics NAV 2013 Process Cash Receipts Using the cash Receipts journal with multiple currencies is basically the same as processing cash receipts that use the local currency. The primary difference is posting restrictions based on currency. The ability to post a journal is determined by the relationship between the Currency Code assigned to the selected bank account and the Currency Code on the receipt lines. The rules for posting cash receipt activity by using multiple currencies are summarized in the following table. Bank Account Currency Code Blank (LCY) Currency Code Printing and Posting Rules Post receipt lines with any currency code including LCY. Post only those receipt lines with the same currency code as the bank account. With multiple currencies you can use the same cash receipt journal when the Bank Account Currency Code is LCY. But you can also take advantage of the following: 1. Payments made in one currency can close invoice entries in a different currency. For example, payment received in Euros can be applied to an invoice in Danish Krone. 2. Payments in one currency can be applied to multiple invoice entries with more than one currency. For example, a payment in Euros can be applied to two invoices, one in Danish Krone and one in Euro. Another difference when you work with multiple currencies is the entries created from posting. When multiple currencies are involved, three Detailed customer ledger entries are created when a payment is applied and posted against an invoice customer ledger entry: An entry with an Entry Type of Initial Entry that contains the amount and currency of the payment. This matches the single entry for the payment in the customer ledger entries window with Payment as the Document Type. An entry with an Entry Type of Application Entry that is the application for the Invoice Customer Ledger Entry. This entry has the due date and is in the currency of the invoice to which it applies. Additionally, it is posted to reduce the Remaining Amount on the Invoice Customer Ledger Entry. 3-18

83 Module 3: Multicurrency An entry with an Entry Type of Application Entry that is the application for the Payment Customer Ledger Entry. This entry has the same currency and due date as the Initial Entry. However, the Amount has the opposite sign. This entry is posted to reduce the Remaining Amount on the Payment Customer Ledger Entry. Demonstration: Process a Cash Receipt Journal Scenario: Arnie, the accounts receivable administrator, has received the customer payments shown in the following table. Customer Name Progressive Home Furnishings New Concepts Furniture Customer Number Currency Invoice Paid Receipt Amount USD GBP (LCY) Klubben NOK New Concepts Furniture typically uses USD as its currency. However, the company remitted this payment in GBP, the local currency of CRONUS International Ltd. Arnie must record the payments in the Cash Receipts Journal by using the World Wide Bank-Operating Account and a posting date of 01/24/14. Because Arnie has never processed a receipt in a different currency from the original invoice, he plans to review the ledger entries for customer after the journal is posted. Demonstration Steps 1. Populate the cash receipt journal. a. On the navigation pane, click Departments. b. Click Financial Management > Cash Management > Cash Receipt Journals. Make sure that the BANK journal batch is selected. c. Click the Application menu > Customize > Choose Columns to add the Currency Code field. Make sure that the Posting Date is set to 01/24/14. d. In the Document Type field, enter Payment. e. In the Account Type field, enter Customer. f. In the Account No. field, enter g. On the Home tab, click Apply Entries. h. Select the line for invoice

84 Finance Advanced in Microsoft Dynamics NAV 2013 i. On the Home tab, click Set Applies-to ID. j. Click OK to apply the entry. Notice the Amount field on the first line of the Cash Receipt Journal page is automatically populated with -2, USD. k. Click the next line. l. In the Account No. field, enter m. In the Currency Code field, delete USD so that the field is blank, representing the LCY. n. On the Home tab, click Apply Entries. o. Select the line for invoice Notice that the Remaining Amount field contains the amount in USD, the currency in which the invoice was created. However the Appln. Remaining Amount field contains the amount in LCY, the currency of the journal line. p. On the Home tab, click Set Applies-to ID. q. Click OK to apply the entry. The Amount field on the second line of the Cash Receipt Journal page is automatically populated with -205, LCY. r. Click the next line. s. In the Account No. field, enter t. On the Home tab, click Apply Entries. u. Select the line for invoice v. On the Home tab, click Set Applies-to ID. w. Click OK to apply the entry. The Amount field on the third line of the Cash Receipt Journal page is automatically populated with - 134, NOK. FIGURE 3.7: CASH RECEIPT JOURNAL 3-20

85 Module 3: Multicurrency 2. Post the journal. a. On the Home tab, click Post. b. Click Yes to post the journal lines. c. Click OK. d. Click OK to close the Cash Receipt Journal page. 3. Review the ledger entries for customer New Concepts Furniture. a. On the navigation pane, click Departments. b. Click Financial Management > Receivables > Customers. c. Select customer d. On the Home tab, click Ledger Entries. e. Notice that the original invoice entry used a currency of USD and that the payment entry that closed it used LCY. f. Select the payment line. g. On the Home tab, click Detailed Ledger Entries. h. Notice that there are two lines displayed for each of the two entries applied and posted. FIGURE 3.8: CUSTOMER LEDGER ENTRIES AND DETAILED CUSTOMER LEDGR ENTRIES 3-21

86 Finance Advanced in Microsoft Dynamics NAV 2013 Process Payments i. Click Close to close the Detailed Cust. Ledg. Entries page. j. Click OK to close the customer ledger entries page. Processing activity in a payments journal for transactions with multiple currencies is basically the same as using the payments journal for transactions with a single, local currency. Similar to the cash receipts journal, there are posting restrictions based on currency. These restrictions also affect the ability to print checks in the payments journal. The ability to print checks and post a journal is determined by the currency code assigned to the selected bank account and the contents of the Bank Payment Type field. The rules for printing checks and posting payments with multiple currencies are summarized in the following table. Bank Account Currency Code Blank (LCY) Bank Payment Type Field Contents Computer Check or Manual Check Printing and Posting Rules Print only those checks for LCY payment lines. Post only LCY payment lines. Blank (LCY) Blank Post payment lines with any currency code including LCY. Currency Code Computer Check or Manual Check Print only those checks with payment lines where the currency code is the same as the bank account. Post only those payment lines with the same currency code as the bank account. Currency Code Blank Post only those payment lines with the same currency code as the bank account. 3-22

87 Demonstration: Print and Post Checks Module 3: Multicurrency Scenario: April, the accounts payable coordinator, is asked to issue checks from the WWB-USD bank account for vendors using USD as their currency. Invoices due on or before 01/31/14 are to be paid. The WWB-USD bank account is a newly opened account for CRONUS International Ltd. The starting check number for the bank account is April must update the Bank Account Card for the last check issued, check Because activity has not been processed previously for payments in USD, the accounting manager has asked April to check the currency code to make sure that account 9150 is specified in the Conv. LCY Rndg. Debit and Conv. LCY Rndg. Credit accounts. After the activity is posted, April reviews the posting for vendor , Progressive Home Furnishings. Demonstration Steps 1. Update the Currency Code and the Bank Account Card. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Currencies. c. Select the USD currency, and then click Edit. d. Expand the Rounding FastTab. e. In the Conv. LCY Rndg. Debit Acc. field, enter f. In the Conv. LCY Rndg. Credit Acc. field, enter g. Click OK to close the Currency Card page. h. In the navigation pane, click Departments. i. Click Financial Management > Cash Management > Bank Accounts. j. Select the WWB-USD bank account, and then click Edit. k. Expand the Posting FastTab. l. In the Last Check No. field, enter m. Click OK to close the Bank Account Card page. 2. Suggest vendor payments in the payment journal. a. In the navigation pane, click Departments. b. Click Financial Management > Payables > Payment Journals, and then click the drop-down of the Batch Name field. c. In the General Journal Batches window, click New. d. In the Name field, enter BANKUSD. e. In the Description field, enter Bank USD. 3-23

88 Finance Advanced in Microsoft Dynamics NAV 2013 f. In the Bal. Account Type field, click the drop-down, and choose Bank Account. g. In the Bal. Account No. field, type WWB-USD. h. In the No. Series field, remove GJNL-PMT. i. Click OK to return to the Payment Journal window. j. On the Home tab, click Suggest Vendor Payments. k. Expand the Options FastTab. l. In the Last Payment Date field, enter 01/31/14. m. In the Bal. Account Type field, enter Bank Account. n. In the Bal. Account No. field, enter the WWB-USD bank account. o. In the Bank Payment Type field, enter Computer Check. p. Expand the Vendor FastTab. q. In the No. filter field, enter r. Click OK to run the Suggest Vendor Payments batch job. s. A message box is displayed stating that you have only created lines for the Currency Code USD. Click OK. t. Click the Choose Columns function to add the Currency Code field. 3. The payments journal is populated with the invoices to be paid. Print the checks and post the journal. a. On the Home tab, click Print Check. b. Expand the Options FastTab. c. In the Bank Account No. field, enter WWB-USD. d. Select the One Check per Vendor per Document No. check box. e. Click Print. f. Select the Print to File check box. g. Click OK. h. In the Output File Name field, enter ck.prn. i. Click OK. The Payments Journal is updated for the printed checks. j. On the Home tab, click Post. k. Click Yes to post the journal lines. l. Click OK. m. Click OK to close the Payment Journal page. 4. Review the posted activity for Progressive Home Furnishings. a. In the navigation pane, click Departments. b. Click Financial Management > Payables > Vendors. c. Select vendor

89 d. On the Home tab, click Ledger Entries. Module 3: Multicurrency e. Make sure that the Original Amount (LCY), Amount (LCY), and Remaining Amount (LCY) fields are visible. If they are not, use the Choose Columns function. f. Select the payment line. g. On the Home tab, click Detailed Ledger Entries. h. Review the two detailed vendor ledger entries. FIGURE 3.9: DETAILED VENDOR LEDGER ENTRIES i. Click Close to close the Detailed Vendor Ledg. Entries page. j. Click OK to close the vendor ledger entries page. 3-25

90 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 3.2: Post Expenses in Foreign Currency Scenario As the accounts receivable administrator for CRONUS International Ltd., you have received the January 2014 vehicle expense. It is your responsibility to post these expenses, in Euros (EUR), including VAT: Gasoline and Motor Oil: EUR Registration Fees: EUR Repairs and Maintenance: EUR Make sure that you set up the following: G/L Account 9150 is set up with direct posting. The Conv. LCY Rndg. Debit Acc. and Conv. LCY Rndg. Credit Acc. fields on the Euro currency are set to On January 1, 2014, use the DEFAULT journal to post these expenses to the cash account. If there is a rounding difference, enter the adjustment for the amount in local currency. You do not have to review the entries for this lab. Exercise 1: Post Expenses in Foreign Currency Task 1: Post Expenses in Foreign Currency High Level Steps 1. Verify the setup is correct. 2. Enter and post the journal. Detailed Steps 1. Verify the setup is correct. a. In the navigation pane, click Departments. b. Click Financial Management > General Ledger > Chart of Accounts. c. Select account d. Select the Direct Posting check box. e. Click OK to close the G/L Account Card. f. In the navigation pane, click Departments. g. Click Financial Management > Periodic Activities > Currency > Currencies. h. Select the EURO currency, and then click Edit. 3-26

91 Module 3: Multicurrency i. In the Conv. LCY Rndg. Debit Acc. field, enter j. In the Conv. LCY Rndg. Credit Acc. field, enter k. Click OK to close Currency Card page. 2. Enter and post the journal. a. In the navigation pane, click Departments. b. Click Financial Management > General Ledger > General Journals. c. Make sure that the DEFAULT journal batch is selected. d. Click the Choose Columns function to add the Currency Code field. e. In the Posting Date field, enter 01/01/14. f. In the Account No. field, enter g. In the Amount field, enter h. In the Currency Code field, enter EUR. i. Click the next line. j. In the Account No. field, enter k. In the Amount field, enter l. In the Currency Code field, enter EUR. m. Click the next line. n. In the Account No. field, enter o. In the Amount field, enter p. In the Currency Code field, enter EUR. q. Click the next line. r. In the Account No. field, enter s. In the Amount field, enter t. In the Currency Code field, enter EUR. u. At the bottom of the General Journal page, notice that the Balance field, represented in EUR, the currency code of the journal lines, is equal to zero. However, the Total Balance field, represented in GBP (LCY), shows that the journal is out of balance by -0,01 LCY. v. On the Home tab, click Insert Conv. LCY Rndg. Lines. w. Notice a new journal line is entered for 0,01 LCY, resulting in the journal being in balance in both the foreign and the local currency. The G/L account that is used is 9150, as set up on the Currency Card page. x. On the Home tab, click Post. y. Click Yes to post the journal lines. z. Click OK. aa. Click OK to close the General Journal page. 3-27

92 Finance Advanced in Microsoft Dynamics NAV 2013 Adjust Exchange Rates Batch Job for Customers, Vendors, and Bank Accounts Run the Adjust Exchange Rates batch job to update LCY amounts for posted entries in Microsoft Dynamics NAV The batch job adjusts customer, vendor, and bank account entries to reflect updated amounts when the exchange rate changes after entries are posted. Adjusting exchange rates are typically completed in the following order: 1. Enter the adjustment exchange rate on the currency. 2. Set filters on the Adjust Exchange Rates batch job. 3. Run the Adjust Exchange Rates batch job. Note: The Adjust Exchange Rates batch job is also used to update additional reporting currency amounts on general ledger entries and will be explained later in this module. Enter the Adjustment Exchange Rate To enter the exchange rate to which the posted entries will be adjusted, follow these steps: 1. In the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Currency > Currencies. 3. Select the currency that will be adjusted. 4. On the Home tab, click Exch. Rates to enter the adjustment. 5. Adjust the exchange rate by using one of the following methods: o In the Adjustment Exch Rate Amount and Relational Adjmt Exch Rate Amt fields on the current line, enter the exchange rate amounts with which to adjust the posted entries. o Enter a new line with the new exchange rates in the Exchange Rate Amount, Relational Exch. Rate Amount, Adjustment Exch Rate Amount, and Relational Adjmt. Exch. Rate Amt. fields. 3-28

93 Module 3: Multicurrency Note: For best approaches, refer to the previous lesson in this module. Note: The Adjust Exchange Rate batch job uses the Adjustment Exchange Rate Amount and Relational Adjmt. Exch. Rate Amt. fields to calculate exchange rate gains and losses. Updating the Relational Exchange Rate Amount field is not necessary for processing the batch. However, the two fields are typically updated at the same time. 6. Click OK to close the Currency Exchange Rates page. The Adjust Exchange Rates Batch Job To run the Adjust Exchange Rates batch job, follow these steps: 1. In the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Currency > Adjust Exchange Rates. FIGURE 3.10: ADJUST EXCHANGE RATES BATCH JOB 3-29

94 Finance Advanced in Microsoft Dynamics NAV Expand the Options FastTab: o o o o o o Starting Date - identifies the first date to use for locating and adjusting transactions. Generally, this field is left blank so that all transactions are adjusted. Ending Date - identifies the last date to use for locating and adjusting transactions. This date is usually the same as the Posting Date. Use the Ending Date field to retrieve the adjustment exchange rate for the batch job in the Currency Exchange Rates page. Posting Description - describes the general ledger entries created by the batch job. The default text is Exchange Rate Adjmt. of %1 %2. When you post the entries, the %1 is replaced by the currency code and %2 is replaced by the currency amount that is adjusted. This results in, for example, Exchange Rate Adjmt. of EUR 38,000. Posting Date - specifies the date on which the adjustment entries are posted. Document No. - identifies the document number that appears on the general ledger entries created by the batch job. Adjust Customer, Vendor and Bank Accounts Adjusts customer, vendor, and bank account entries for currency fluctuations. 4. Expand the Currency FastTab. 5. Select the currency codes that will be adjusted by the batch job. 6. Click OK to run the Adjust Exchange Rates batch job. Exchange Rate Adjustment Process for Customers and Vendors For customer and vendor accounts, the Adjust Exchange Rates batch job does the following: Adjusts the currency by using the exchange rate that is valid on the posting date specified in the batch job. Calculates the differences for the individual currency balances. Posts the amounts to the G/L account specified in the Unrealized Gains Acc. field or the Unrealized Losses Acc. field on the Currency page. Posts balancing entries to the Receivables or Payables account in the general ledger automatically. 3-30

95 Amount - EUR (Customer Ledger Entries window) Module 3: Multicurrency The batch job processes all open customer ledger entries and vendor ledger entries. If there is an exchange rate difference for an entry, the batch job creates a new detailed customer or vendor ledger entry that reflects the adjusted amount on the customer or vendor ledger entry. Exchange Rate Adjustment Process for Bank Accounts For bank accounts, the Adjust Exchange Rates batch job does the following: Adjusts the currency by using the exchange rate that is valid on the posting date specified in the batch job. Calculates the differences for each bank account that has a currency code and posts the amounts to the G/L account specified in the Realized Gains Acc. field or the Realized Losses Acc. field in the Currencies page. Posts balancing entries to the G/L accounts that are specified in the Bank Account Posting Groups automatically. Calculates one entry for each currency, for each posting group. Demonstration: Adjust Currency Exchange Rate Scenario: Phyllis, the accounting manager of CRONUS International Ltd., is working with the accounting department to close the month for January Phyllis wants to capture gains and losses caused by fluctuations in the exchange rate between the local currency, GBP, and the Euro. The exchange rate as of 01/31/14 is 1.00 EUR =.65 GBP, the local currency for CRONUS International Ltd. Phyllis plans to run the Adjust Exchange Rates batch job for customers, vendors, and the bank accounts. Phyllis has selected invoice 10310, posted to customer Antarcticopy, to trace through the system. Phyllis calculated the current valuation and the expected valuation as shown in the following table. Relational Exchange Rate Amount (Currency Exchange Rates window) Relational Adjmt. Exch. Rate Amount (Currency Exchange Rates window) Operation Amount (LCY) - GBP (Customer Ledger Entries window) * * Based on her calculations, Phyllis expects the Adjust Exchange Rates batch job to post an unrealized loss of ( ). Phyllis plans to review the posting result and compare it to her calculations. 3-31

96 Finance Advanced in Microsoft Dynamics NAV 2013 Demonstration Steps 1. Update the Currency Exchange Rates page for the Euro. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Currencies. c. Select the EUR currency code. d. On the Home tab, click Exch. Rates. e. Click New. f. In the Starting Date field, enter 01/31/14. g. In the Exchange Rate Amount field, enter 1. h. In the Relational Exch. Rate Amount field, enter.65. i. In the Adjustment Exch. Rate Amt field, enter 1. j. In the Relational Adjmt Exch Rate Amt field, enter.65. k. Click OK to close the Currency Exchange Rates. 2. Run the Adjust Exchange Rates batch job. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Adjust Exchange Rates. c. Expand the Options FastTab. d. Leave the Starting Date field blank so that all transactions are included. e. In the Ending Date field, enter 01/31/14. f. Accept the default settings in the Posting Description and Posting Date fields. g. In the Document Number field, enter ADJACY h. Select the Adjust Customer, Vendor, and Bank Accounts check box. i. Expand the Currency FastTab. j. In the Code filter field, enter EUR. k. Click OK to run the batch job. A status box displays while the batch job is processed and closes when the process is completed. 3. Review the customer ledger and detailed customer ledger entries for Antarcticopy. a. On the navigation pane, click Departments. b. Click Financial Management > Receivables > Customers. c. Select customer , Antarcticopy. d. On the Home tab, click Ledger Entries. 3-32

97 Module 3: Multicurrency e. Click the Choose Columns functions to add the Original Amount (LCY), Amount (LCY), and Remaining Amount (LCY) fields. f. Verify that the amounts in the Original Amount (LCY) and Amount (LCY) fields agree with the calculations in the table in the scenario. g. On the Home tab, click Detailed Ledger Entries. h. Notice that there are two entries in the Detailed Customer Ledger Entries page: One for the initial entry. One for the unrealized loss. i. Select the second entry. j. On the Home tab, click Navigate. k. Select the G/L Entry line. l. On the Home tab, click Show. m. Review the entries for amount : A debit to account 9320, Unrealized FX Losses. A credit to account 2320, Customers, Foreign. n. Click Close to close the General Ledger Entries page. o. Click Close to close the Navigate page. p. Click Close to close the Detailed Cust. Ledg. Entries page. q. Click OK to close the Customer Ledger Entries page. 3-33

98 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 3.3: Update the USD:GBP Exchange Rate Scenario At the end of January 2014, the relational exchange rate amount between USD and LCY is 100 USD = 50 GBP. Because there are customers and vendors that use USD as their default currency, you must run the Adjust Exchange Rates batch job. Because you posted activity to its account this month, you want to trace any adjustment to the customer ledger entry for Spotsmeyer's Furnishings. Note: To successfully complete this lab, first the lab "Process a Sales Invoice" has to completed. Exercise 1: Update the USD:GBP Exchange Rate Task 1: Update the USD:GBP Exchange Rate High Level Steps 1. Update the exchange rate for the USD. 2. Run the Adjust Exchange Rates batch job. 3. Review the customer ledger entry for Spotsmeyer's Furnishings. Detailed Steps 1. Update the exchange rate for the USD. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Currencies. c. Select the USD currency code. d. On the Home tab, click Exch. Rates. e. Click New. f. In the Starting Date field, enter 01/31/14. g. In the Exchange Rate Amount field, enter 100. h. In the Relational Exch. Rate Amount field, enter 50. i. In the Adjustment Exch. Rate Amt field, enter 100. j. In the Relational Adjmt Exch Rate Amt field, enter 50. k. Click OK to close the Currency Exchange Rates. 3-34

99 2. Run the Adjust Exchange Rates batch job. a. On the navigation pane, click Departments. Module 3: Multicurrency b. Click Financial Management > Periodic Activities > Currency > Adjust Exchange Rates. c. Expand the Options FastTab. d. Leave the Starting Date field blank so that all transactions are included. e. In the Ending Date field, enter 01/31/14. f. Accept the default settings in the Posting Description and Posting Date fields. g. In the Document Number field, enter ADJACY h. Select the Adjust Customer, Vendor, and Bank Accounts check box. i. Expand the Currency FastTab. j. In the Code filter field, enter USD. k. Click OK to run the batch job. 3. Review the customer ledger entry for Spotsmeyer's Furnishings. a. On the navigation pane, click Departments. b. Click Financial Management > Receivables > Customers. c. Select customer , Spotsmeyer's Furnishings. d. On the Home tab, click Ledger Entries. e. On the Home tab, click Detailed Ledger Entries. f. Notice that there are two entries in the Detailed Customer Ledger Entries page: One for the initial entry. One for the unrealized loss. g. Click Close to close the Detailed Cust. Ledg. Entries page. h. Click OK to close the Customer Ledger Entries page. 3-35

100 Finance Advanced in Microsoft Dynamics NAV 2013 Set Up Additional Reporting Currency With Microsoft Dynamics NAV 2013, companies can record general ledger transactions in both the local currency (LCY) and an additional reporting currency (ACY). The main purpose for using an additional reporting currency is to generate reports that are more meaningful to users of financial statements and other reports. After an additional reporting currency is set up, Microsoft Dynamics NAV 2013 automatically does the following: Records amounts in both LCY and the additional reporting currency on each general ledger entry and on other entries, such as VAT entries. Uses information from the Currency Exchange Rates page to find the exchange rate for recording transactions in the additional reporting currency. Note: The Additional Reporting Currency functionality is not to be used as a basis for financial statement translation. It is not a tool that can perform translation of foreign subsidiary financial statements as part of a company consolidation. The additional reporting currency functionality only provides the option of preparing reports in another currency, as if that was the company s local currency. Set Up an Additional Reporting Currency The setup required to use an additional reporting currency is as follows: Select general ledger accounts for posting exchange rate adjustments. Specify the exchange rate adjustment method for general ledger accounts. Specify the exchange rate adjustment method for VAT entries. Enable the additional reporting currency. Set Up Currency Card The G/L accounts for posting exchange rate adjustments are set up on the General and Reporting FastTabs of the Currency Card. To open the Currency Card page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Currency > Currencies. 3-36

101 Module 3: Multicurrency 3. Select the currency that you want to set up as the additional reporting currency, and then click Edit. 4. Make sure the following fields are set up: o Unrealized Gains Acc. & Unrealized Losses Acc. o o o Realized Gains Acc. & Realized Losses Acc. Realized G/L Gains Account & Realized G/L Losses Account Residual Gains Account & Residual Losses Account Note: These fields were explained in the lesson "Currency Card and Currency Exchange Rates" of this module. 5. Click OK to close the Currency Card page. Set Up G/L Account Card When you use an additional reporting currency, you must make a selection for every G/L posting account in the Exchange Rate Adjustment field. This selection determines how amounts for an account will be adjusted for exchange rate fluctuations between LCY and the additional reporting currency when the Adjust Exchange Rate batch job is run to adjust G/L accounts. To make selections for the G/L posting accounts, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > Chart of Accounts. 3. Select the G/L account and then click Edit. 4. Expand the Reporting FastTab. 5. In the Exchange Rate Adjustment field, click the drop-down list and select the correct method. o No Adjustment: No exchange rate adjustment is made to the account. This is the default selection. o Adjust Amount: The LCY amount field is adjusted for any exchange rate gains or losses. o Adjust Additional-Currency Amount: The Additional Currency Amount field is adjusted for any exchange rate gains or losses. Note: The No Adjustment selection is made if the exchange rate between the LCY and additional reporting currency is always fixed. This situation is common for companies preparing to change to Euro that have an EMU currency as the local currency and Euro as an additional reporting currency. 3-37

102 Finance Advanced in Microsoft Dynamics NAV 2013 Set Up General Ledger Setup Specify Exchange Rate Adjustment Method for VAT Entries When you use an additional reporting currency, you can use the VAT Exchange Rate Adjustment field in the General Ledger Setup page to determine how the accounts set up for VAT posting on the VAT Posting Setup page are adjusted for exchange rate fluctuations. Adjustments between LCY and the additional reporting currency are calculated when the Adjust Exchange Rates batch job to adjust G/L accounts is run. To select the VAT Exchange Rate Adjustment, follow these steps: 1. From the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Finance > General Ledger Setup. 4. Expand the Reporting FastTab. 5. In the VAT Exchange Rate Adjustment field, click the drop-down list to make a selection. a. No Adjustment - no exchange rate adjustment is made to the VAT account. This is the default selection. b. Adjust Amount - the LCY amount field is adjusted on the VAT account for any exchange rate gains or losses. c. Adjust Additional-Currency Amount - the Additional Currency Amount field on the VAT account is adjusted for any exchange rate gains or losses. 6. Click OK to close the General Ledger Setup page. Adjust Add. Reporting Currency Batch Job When the Additional Reporting Currency is enabled, Microsoft Dynamics NAV 2013 runs a batch job to update previously posted entries. The Adjust Add. Reporting Currency batch job proceeds as follows: Uses the exchange rate from the Currency Exchange Rates page that is valid on the work date. Calculates the additional reporting currency amounts based on the LCY amounts on existing entries. 3-38

103 Module 3: Multicurrency Posts residual (rounding) amounts that occur on conversion of LCY to additional reporting currency: o o To the Residual Gains Account or Residual Losses Account specified in the Currencies page. Using the posting date and document number from the original general ledger entry. Posts a rounding entry on the closing date of each closed year to the Retained Earning account. This guarantees that the ending balance of the income accounts in closed years is zero (0) for both LCY and the additional reporting currency. Note: To enable an additional reporting currency, the Residual Gains Account and Residual Losses Account must be set up for the currency. To select an additional reporting currency, follow these steps: 1. From the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > Finance > General Ledger Setup. 4. Expand the Reporting FastTab. 5. In the Additional Reporting Currency field, click the drop-down list and select the additional currency to report in from the Currencies page. 6. Click OK. The Adjust Add. Reporting Currency batch job opens. 3-39

104 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 3.11: ADJUST ADD. REPORTING CURRENCY BATCH JOB 7. Expand the Options FastTab. 8. The Additional Reporting Currency field contains the additional reporting currency selected in the General Ledger Setup page. Click the AssistEdit (... ) button to update the exchange rate to use to convert the LCY amounts to the additional reporting currency. 9. Be aware of the following: o o The Document No. field identifies document number to use for the entry created by the batch job that is posted to the retained earnings account. For the residual amount entries, the original transaction document number applies. The Retained Earnings Acc. field specifies the retained earnings account for the batch job to use in posting. This account must be the same as the account that was used by the Close Income Statement batch job. 10. Click OK to run the batch job. OK. Note: The additional reporting currency will be enabled only after you click 11. Click OK to close the General Ledger Setup page. 3-40

105 Module 3: Multicurrency After the system runs the Adjust Add. Reporting Currency batch job, the following existing entries have amounts in both LCY and in the Additional-Currency (ACY) fields: General ledger entries Analysis view entries VAT entries Value entries Job ledger entries Production order line entries In addition, the local currency and additional reporting currency amounts are recorded for all new entries of these types. Note: The Adjust Add. Reporting Currency batch job deletes analysis view entries unless the Blocked field in the Analysis View page is selected before you enable the additional reporting currency. The analysis view must be updated for entries to be available. Analysis by dimensions and analysis views will be explained in the module "Financial Reporting and Analysis" of this course. Use Additional Reporting Currency View ACY Amounts on Pages The fields related to additional reporting currency can be displayed on various pages, including the following: Chart of Accounts Acc. Schedule Overview Analysis by Dimensions G/L Balance by Dimension To view the additional reporting currency amounts in the Chart of Accounts page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > Chart of Accounts. 3. Click the Choose Columns function to add the Additional-Currency Net Change, Add.-Currency Balance at Date, and Additional- Currency Balance fields. 3-41

106 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 3.12: CHART OF ACCOUNTS On the Analysis by Dimensions and Account Schedule Overview pages, select the Show Amounts in Add. Reporting Currency check box on the Options FastTab to view the data in the additional reporting currency. When the data is displayed in the additional reporting currency, it can be exported to Microsoft Excel from both the Acc. Schedule Overview and Analysis by Dimensions pages. View ACY Amounts in Reports Several reports in the General Ledger application area are based on general ledger entries. Many of these reports can be printed in the additional reporting currency that includes Account Schedules and the Closing Trial Balance report. To display the financial data in these reports in the additional reporting currency, select the Show Amounts in Add. Reporting Currency field on the Options FastTab for the report. Similarly, all the reporting for VAT, including VAT statements, VIES declaration disks, and VAT settlements, can be done in the additional reporting currency. Select the Show Amounts in Add. Reporting Currency field on the Options FastTab for the relevant VAT report. 3-42

107 Daily Processing Module 3: Multicurrency There are no special steps required to process daily activity using an additional reporting currency. When you use an additional reporting currency, follow these guidelines: Enter exchange rates on the Currency Exchange Rates page. Process transactions as usual. Transactions can be entered using LCY. The system converts the LCY amount to the additional reporting currency by using the entry in the Currency Exchange Rates table that is valid for the Work Date. Adjust Exchange Rates Batch Job for G/L Accounts When you use an additional reporting currency, run the Adjust Exchange Rates batch job to record any exchange rate differences for previously posted transactions. Typically, the batch job is run at the end of the month. This batch job proceeds as follows: Finds the appropriate adjustment exchange rate in the Currency Exchange Rates window. Compares the amounts in the Amount and Additional-Currency Amount fields on the general ledger entries to determine an exchange rate gain or loss. Uses the option selected in the Exchange Rate Adjustment field on each general ledger posting account to determine whether to calculate and post exchange rate gains or losses. Note: The values in the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields in the Currency Exchange Rates page are used by the Adjust Exchange Rates batch job to calculate gains or losses on open entries caused by currency fluctuations. Adjust Exchange Rates Batch Job To run the Adjust Exchange Rates batch job, follow these steps: 1. In the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Currency > Adjust Exchange Rates. 3. Expand the Options FastTab: 3-43

108 Finance Advanced in Microsoft Dynamics NAV Select the field, Adjust G/L Accounts for Add.-Reporting Currency, to adjust general ledger accounts and VAT entries for currency fluctuations. 5. Click OK to run the Adjust Exchange Rates batch job. Exchange Rate Adjustment Process for G/L Accounts The Adjust Exchange Rates batch job proceeds as follows: Calculates the differences for each general ledger entry. Adjusts the general ledger entry, depending on the contents of the Exchange Rate Adjustment field for each G/L account. View the Exchange Rate Adjustment Register The Exchange Rate Adjmt. Register provides an overview of all the exchange rate adjustments made by the Adjust Exchange Rates batch job. To open the Exchange Rate Adjmt. Register page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Currency > Exch. Rate Adjmt. Registers. 3. Each line displays the following: o Type of entries adjusted. o Currency and base amount adjusted. o Adjustment amount. Demonstration: Review Adjust Currency Exchange Rate After completing the demonstration Adjust Currency Exchange Rate, you can now review all created exchange rate adjustments on the Exchange Rate Adjustment Register. Demonstration Steps 1. Review the Exchange Rate Adjmt. Register. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Currency > Exchange Rate Adjmt. Register. c. Notice that there are entries for Bank, Customer, and Vendor. Locate the line for the adjustment. 3-44

109 Summary of Currency Exchange Rates Module 3: Multicurrency The following table provides a summary of how Microsoft Dynamics NAV 2013 uses the amounts on the Currency Exchange Rates page. Task Entering a default exchange rate for journals and documents. Adjusting the exchange rate of posted customer/vendor, bank account and G/L entries. Fields used from Currency Exchange Rates page 1. Exchange Rate Amount 2. Relational Exch Rate Amount 3. Starting Date 1. Adjustment Exch Rate Amount 2. Relational Adjmt Exch Rate Amt( 3. Starting Date How fields are used Starting Date compared to Posting Date on journal or document. The latest entry with Starting Date <= Posting Date is determined and fields (1) and (2) are used to calculate the default exchange rate. Starting Date compared to Ending Date in Adjust Exchange Rates batch job. The latest entry with Starting Date <= Ending Date is determined and fields (1) and (2) are used to calculate the adjustment exchange rate. 3-45

110 Finance Advanced in Microsoft Dynamics NAV 2013 Module Review Module Review and Takeaways Multicurrency helps companies as they do the following: Process transactions for vendors, customers, and bank accounts using a currency other than the local currency. Designate an additional reporting currency to use for general ledger activity, including reporting capabilities. Consolidate subsidiaries that operate in different currencies than the parent company. Microsoft Dynamics NAV 2013 provides flexibility by offering separate fields for setting exchange rates for the following: Current transactions. Adjusting open transactions for exchange rate fluctuations. Companies that operate globally can benefit from the multicurrency functionality offered by Microsoft Dynamics NAV 2013 in the following ways: Entries can be entered and posted in all currencies. Realized and unrealized foreign exchanges gains and losses are adjusted and calculated automatically. Reporting can be done in different currencies. Test Your Knowledge Test your knowledge with the following questions. 1. If GBP is set up as the local currency, where do you specify the payment tolerance percentage for USD? ( ) On the General Ledger Setup Card page. ( ) On the Currency Card page. ( ) On the Exchange Rates page. ( ) On the G/L Account Card page 3-46

111 Module 3: Multicurrency 2. What date in the Currency Exchange Rate window do you use to specify the effective date to use for the exchange rate? ( ) Starting date ( ) Posting date ( ) Document date ( ) Exchange rate date 3. Which statement is true about the Adjust Exchange Rates batch job? ( ) You can specify if you want to calculate realized or unrealized exchange rate differences. ( ) The batch job runs for one currency at a time. ( ) The batch job adjusts customer, vendor, and bank account entries to reflect updated amounts when the exchange rate changes after entries are posted. ( ) You need to run the batch job a least once a month. 4. Explain the rules for posting cash receipt activity by using multiple currencies. 3-47

112 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Solutions Module Review and Takeaways 1. If GBP is set up as the local currency, where do you specify the payment tolerance percentage for USD? ( ) On the General Ledger Setup Card page. ( ) On the Currency Card page. ( ) On the Exchange Rates page. ( ) On the G/L Account Card page 2. What date in the Currency Exchange Rate window do you use to specify the effective date to use for the exchange rate? ( ) Starting date ( ) Posting date ( ) Document date ( ) Exchange rate date 3. Which statement is true about the Adjust Exchange Rates batch job? ( ) You can specify if you want to calculate realized or unrealized exchange rate differences. ( ) The batch job runs for one currency at a time. ( ) The batch job adjusts customer, vendor, and bank account entries to reflect updated amounts when the exchange rate changes after entries are posted. ( ) You need to run the batch job a least once a month. 4. Explain the rules for posting cash receipt activity by using multiple currencies. MODEL ANSWER: Cash receipt journals that use bank accounts with a blank currency code, post receipt lines with any currency code including LCY. Cash receipt journals that use bank accounts with a currency code, post receipt lines with the same currency codes as the bank account. 3-48

113 MODULE 4: BUDGETS Module Overview Two main components of the General Ledger application area are Chart of Accounts and G/L Budgets. The Chart of Accounts provides quick access to G/L accounts and balances, and the Budgets feature provides a comparison between actual amounts and budgeted amounts, by using a combination of the following: G/L accounts Periods Objectives Global dimensions Budget dimensions The objectives are: Explain the Budgets feature in Microsoft Dynamics NAV Explain the G/L Budgets page elements. Show how to set up budgets manually. Explain how to delete budget entries. Explain how to create budgets by using the Copy Budget function. Explain how to create budgets by using the Export Budget and Import Budget functions. 4-1

114 Finance Advanced in Microsoft Dynamics NAV 2013 General Ledger Budgets A budget is an overview of planned expenses and revenues. It is an important tool for companies, used in business intelligence to measure the actual financial operation of the business against the forecast. In Microsoft Dynamics NAV 2013, the Budget feature lets you do the following: Create multiple budgets for identical time periods. Create simple or complex budgets by selecting a combination of G/L account, period, the two global dimensions, and four budget dimensions. Copy budgets from previous periods and revise actual figures or budget figures by using an adjustment factor. Export budgets to and import budgets from Microsoft Excel. Setting Up G/L Budget Names When you want to start entering a budget, the first step is to create a budget name. You can set up multiple budgets for identical time periods by creating budgets with separate names in the G/L Budget page. When you create a new budget name, you have to determine whether you want to use dimensions. Global dimensions are available on all budgets, but you can specify four additional budget dimensions on each budget. This means that you can use no more than six budget dimensions. Budget dimensions can be used to set filters on a budget and add dimension information to budget entries. Budget dimensions let you use dimensions in budgets in the same manner as you use them when you post sales and purchases. For example, you can compare the actual sales by region with the budgeted sales by region. To set up a G/L budget name, follow these steps: 1. In the Search box, type "G/L Budgets", and select the related link. 2. In the Home tab on the ribbon, click New. 3. In the Name field, type a unique identifier for this budget. 4. In the Description field, type a short description. 5. In the Budget Dimension 1 Code field, click the drop-down list and select the relevant dimension, as needed. 4-2

115 Budget Page Module 4: Budgets 6. In the Budget Dimension 2 Code field, click the drop-down list and select the relevant dimension, as needed. 7. In the Budget Dimension 3 Code field, click the drop-down list and select the relevant dimension, as needed. 8. In the Budget Dimension 4 Code field, click the drop-down list and select the relevant dimension, as needed. 9. Click OK. You can edit the budget by double-clicking the line, or in the ribbon click Edit Budget. You use the G/L Budget page to set up budgets. With the General FastTab and Filters FastTab, you can specify the budget period and filter G/L accounts and dimensions. The Budget Matrix page displays budgeted amounts in various views. This includes the following: G/L accounts in different time periods Dimensions in different time periods Dimensions and G/L accounts Dimensions and Dimensions Budget Page To access the Budget page, type "G/L Budgets" in the Search box, and click the related link. In the G/L Budget Names page, on the ribbon in the Home tab, click Edit Budget. 4-3

116 Finance Advanced in Microsoft Dynamics NAV 2013 The Budget page contains the following three FastTabs: General Budget Matrix Filters FIGURE 4.1: G/L BUDGET PAGE General FastTab On the General FastTab, you specify the layout of the Budget Matrix page and determine the time intervals for which you want to view budget figures On the General FastTab, the following fields appear: Budget Name select the name of the budget on which you want to work. Show as Lines - select the dimension that you want to show as lines in the Budget Matrix FastTab. The options are as follows: o Global Dimension 1 and 2. o o o G/L Account. Period. Budget dimensions, if they are specified for the selected budget. 4-4

117 Module 4: Budgets Show as Columns - select the dimension that you want to show as columns in the Budget Matrix FastTab. The options are the same as in the Show as Lines field. View By - select the time intervals for which you want to view budget figures. Rounding Factor - select a rounding factor that the program will use to round the amounts in the columns. For example, if you select 1000, then all amounts are shown in thousands. Show Column Name - select this field if you want column headings to show the descriptive names that you have given dimension values and G/L accounts instead of the corresponding codes. Budget Matrix FastTab In the Budget Matrix FastTab, you enter and view the budgeted amounts. The budget matrix is determined by the Show as Lines and Show as Columns fields on the General FastTab. When you first open a budget, G/L accounts are displayed as lines, and periods are displayed as columns. However, you can also show one of the global or budget dimensions as lines or columns. This enables you, for example, to efficiently enter and view a budget by region. The Budget Matrix FastTab contains following buttons: Balance show the G/L Account Balance/Budget window. Find search in the Budget Matrix window. Filter specify filters for the Budget Matrix window. Clear Filter remove all the filters on the Budget Matrix window. Filters FastTab The Filters FastTab contains fields used to determine how the information in the Budget window appears. This includes the following: Date Filter - specifies the date interval by which values are filtered. If this field contains starting and ending dates for a time period, the values in the following fields will behave as described: o o Net Change and Budgeted Amount fields display the net change on an account during that period. Balance at Date and Budget at Date fields show the balance from the start to the end dates of the filter. 4-5

118 Finance Advanced in Microsoft Dynamics NAV 2013 G/L Account Filter - specifies a filter for G/L accounts so the values in the following fields are based only on the G/L accounts included in the filter: o o o Balance Budget at Date Budgeted Amount Department Filters and Project Filters display fields based on the global dimensions setup in the general ledger setup. You can use these fields to specify a filter for the two global dimensions so that the values in the following fields are based only on the dimension values included in the filter: o o o o o Net Change Balance at Date Balance Budget at Date Budgeted Amount Four other Budget Dimension Filters - specifies a filter for a budget dimension so that the amounts in the budget fields are based only on entries with the dimension values included in the filter. Note: The more filters used in the G/L Budget, the more detail is included in management reporting. We recommend that you enter and filter budget information in the same manner as when you are recording G/L entries. Budget Page Ribbon The Budget page ribbon provides several functions and overviews related to budgets. On the Home tab, you can scroll to different periods and columns, and use the following functions: Copy Budget - copies an existing budget to a new one. Delete Budget deletes entries of the selected budget. Export to Excel / Import from Excel - exports a budget from Microsoft Dynamics NAV to an Excel workbook. You can import the budget back into Microsoft Dynamics NAV by using the Import from Excel function. Reverse Lines and Columns switches the lines to columns and the other way around. G/L Balance/Budget browse to the G/L Balance/Budget window. 4-6

119 Creating Budgets Manually Module 4: Budgets In Microsoft Dynamics NAV 2013, you can create budgets in many ways. This includes the following: Manually. Copying from an existing budget. Importing an exported budget as an Excel spreadsheet. This lesson includes a demonstration that shows how to create a budget manually and also provides additional budget setup information, such as the following: Changing or Adding Dimensions Budgeting with Begin-Totals and End-Totals Deleting Budget Entries Demonstration: Create a Budget Manually Scenario: Sara, the CFO at CRONUS International Ltd., must set up a sales budget for January Because she analyzes actual sales by business group and customer group, she wants to create the sales budget in the same manner. The budget must be set up as follows: Lines: G/L Account Columns: Customer Group Date filter: January 2011 Department (Global Dimension 1) filter: Sales Column Names are displayed Monthly view The entries in the following table must be made for January G/L Account Intercompany Large Business Medium Business Private Small Business Note: Sales are entered negative because they represent credit amounts. 4-7

120 Finance Advanced in Microsoft Dynamics NAV 2013 Demonstration Steps 1. Create a new budget name. a. In the Search box, type "G/L Budgets", and select the related link. b. In the Home tab on the ribbon, click New. c. In the Name field, type "2015-SALES". d. In the Description field, type "2015 Sales budget". e. In the Budget Dimension 1 Code field, click the drop-down list and select Business Group. f. In the Budget Dimension 2 Code field, click the drop-down list and select Customer Group. g. Click OK. Note: In addition to the two budget dimensions selected in the steps above, you can also use the two global dimensions in this budget. Before you start to enter budget amounts, first apply several filters to the Budget window. The purpose is that only the information, necessary to enter the budget, is displayed. This makes the entry of the budget more efficient. For example, in this demonstration the sales budget is entered on sales G/L accounts. This means that you can hide all the other G/L accounts by applying a G/L account filter. 2. Enter the budget header. a. Select the 2015 Sales Budget and double-click to open the Budget page b. On the General FastTab, in the Show as Lines field, make sure that G/L Account is selected. c. On the General FastTab, in the Show as Columns field, click the drop-down list and select Customer Group. d. On the General FastTab, select the Show Column Name check box. e. On the General FastTab, in the View by field, click the dropdown list and select month. f. On the Filters FastTab, in the Date Filter field, enter g. On the Filters FastTab, in the G/L Account Filter field, enter h. On the Filters FastTab, in the Department Filter field, click the drop-down list and select Sales. i. Click OK. 4-8

121 Module 4: Budgets FIGURE 4.2: BUDGET WINDOW 3. Enter the budget lines. a. In the Budget Matrix section, locate and select G/L Account b. Click in the field Budgeted Amount to see the G/L Budget Entries for c. On the ribbon, click New to open the G/L Budget Entries window. The following information will automatically be in each line: a. Budget name: 2015-SALES b. Date c. G/L account 6110 d. Department code: SALES. Enter the following information for account 6110: a. In the Customergroup field, select Intercompany Customers, and in the Amount field type "-20000". 4-9

122 Finance Advanced in Microsoft Dynamics NAV 2013 b. In the Customergroup field select Large Business, and in the Amount field type "-15000". c. In the Customergroup field select Medium Business, and in the Amount field type "-10000". d. In the Customergroup field select Private, and in the Amount field type "-5000". e. In the Customergroup field select Small Business, and in the Amount field type "-1000". f. Click OK g. Locate and select G/L Account 6120 in the budget matrix. h. Click in the field Budgeted Amount to see the G/L Budget Entries for i. On the ribbon, click New. Enter the following information for account 6120: a. In the Customergroup field, select Intercompany Customers, and in the Amount field type "-15000:. b. In the Customergroup field, select Large Business, and in the Amount field, type "-10000". c. In the Customergroup field, select Medium Business, and in the Amount field, type "-8000". d. In the Customergroup field, select Private, and in the Amount field, type "-1000". e. Click OK. f. Locate and select G/L Account 6130 in the budget matrix. g. Click in the Budgeted Amount field to see the G/L Budget Entries for h. Click New. Enter the following information for account 6130: a. In the Customergroup field, select Intercompany Customer, and in the Amount field, type "-10000". b. In the Customergroup field, select Large Business, and in the Amount field, type "-5000". c. In the Customergroup field, select Medium Business, and in the Amount field, type "-3000". d. Click OK. The budget amounts for each customer group are now entered. Note: You can also enter amounts directly in the Budget window. 4-10

123 Module 4: Budgets FIGURE 4.3: BUDGET WINDOW Change or Add Dimensions to Budget Entries Unlike G/L entries, G/L budget entries can be changed any time. After budget entries are created, you can change existing dimensions and add dimensions not included in the G/L Budget page. To use all four dimensions when you set up a budget, you can enter budget entries with amounts for each budget row and column, with each dimension combination. You can set up a budget with all four dimensions by using either of the following methods: Change the filter every time for each combination. Manually enter all the budget entries with different dimension combinations. Note: When you create a large multidimensional budget for the first time, export the budget structure to Excel to complete the data entry. You can then import the budget into Microsoft Dynamics NAV 2013 by using the Import to Excel function. 4-11

124 Finance Advanced in Microsoft Dynamics NAV 2013 Budget with Begin Totals and End Totals You can use Begin Total accounts for entering budget amounts for an account group. For example, if you use the Sales of Retail accounts that include Begin Total account 6105, Accounts , and End Total account 6195, the system behaves as follows: If an amount is entered for Account No. 6105, this value is used as a budget for the account group for 6110 to If amounts are entered for the Begin Total account and for another account of this group, for example 6120, both amounts are added in the End Total account on FIGURE 4.4: BUDGET WINDOW The total amount entered in each instance is not split into partial amounts to the existing G/L accounts of this group. To compare budget entries with the G/L entries by individual account (and not by an account group), budget information must be entered account by account. 4-12

125 Delete Budget Entries Module 4: Budgets If you delete a value in a column field in the Budget page, a negative budget entry is created in the G/L Budget Entry page to maintain the traceability of the budget changes. FIGURE 4.5: G/L BUDGET ENTRIES To delete a single budget entry in the G/L Budget page, follow these steps: 1. In the Search box, type "G/L Budgets", and select the related link. 2. Double-click the budget name of the budget for which you want to delete an entry. 3. In the budget matrix, locate the column line with the budget amount that you want to delete, press the Delete key, and then press Enter. 4. Close the G/L Budget Entries page. If you want to delete multiple entries of a budget, follow these steps: 1. In the Search box, type "G/L Budgets", and select the related link. 2. Double-click the name of the budget for which you want to delete an entry. 3. In the budget matrix, apply filters so that all the entries that you want to delete are visible. 4. In the Home tab on the ribbon, click Delete Budget. 5. A warning message appears. Click Yes. 6. Close the G/L Budget Entries page. 4-13

126 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 4.1: Create a Budget Scenario Sara the CFO at CRONUS International Ltd. has asked you to set up a new January 2015 G/L account budget by areas for medium-sized industrial customers sales. Name the budget: Region15 - Sales by Region 2015 and use Budget Dimensions Business Group, Customer Group, and Area. The budgeted revenues are as shown in the following table. Area G/L Account Budgeted Amount Europe North (EU) , Europe North (EU) , Europe North (Non EU) , Europe South , America North , America South , Exercise 1: Create a Budget Task 1: Set up the budget name by using the criteria described in the scenario. High Level Steps 1. Set up the budget name by using the criteria stated in the scenario. Detailed Steps 1. Set up the budget name by using the criteria stated in the scenario. a. In the Search box, type "G/L Budgets", and select the related link. b. In the G/L Budget page, click New. c. In the Name field, type "Region15". d. In the Description field, type "Sales by Region 2015". e. In the Budget Dimension 1 Code field, click the drop-down list and select Business Group. f. In the Budget Dimension 2 Code field, click the drop-down list and select Customer Group. g. In the Budget Dimension 3 Code field, click the drop-down list and select Area. h. Click OK. 4-14

127 Module 4: Budgets Task 2: Set up the budget by using the criteria described in the scenario. High Level Steps 1. Set the dimension filters, based on the information stated in the scenario. 2. In the budget matrix, enter the amounts as stated in the scenario. Detailed Steps 1. Set the dimension filters, based on the information stated in the scenario. a. Select the Region15 budget and double-click. b. On the General FastTab, make sure that the Show as Lines field shows G/L Account. c. In the Show as Columns field, select Area. d. In the View by field, click Month. e. Make sure that there is no rounding set, and then select the Show Column Name check box. f. Expand the Filters FastTab. g. In the Date Filter field, enter h. In the Department Filter field, select SALES and then click OK. i. In the Businessgroup Filter field, select INDUSTRIAL and then click OK. j. In the Customergroup Filter field, select MEDIUM and then click OK. 2. In the budget matrix, enter the amounts as stated in the scenario. a. In the lines of the budget matrix, locate G/L Account b. Click the area Europe North (EU) field. c. Click New, in the Amount field type " ", and then click OK. d. Locate account 6120, and then click the Europe North (EU) field. e. Click New, in the Amount field type " ", and then click OK. f. Locate account 6120 and click the Europe South field. g. Click New, in the Amount field type " ", and then click OK. h. Locate account 6130 and click the Europe North (EU) field. i. Click New, in the Amount field type "-80000", and then click OK. 4-15

128 Finance Advanced in Microsoft Dynamics NAV 2013 Copying Budgets j. Locate account 6130 and click the America North field. k. Click New, in the Amount field type "-90000", and then click OK. l. Locate account 6130, and click the America South field. m. Click New, in the Amount field type "-50000", and then click OK. n. In the budget - REGION15 window, click OK. Entering budgets manually can be very time consuming. To avoid manually entering a new budget, you can use the Copy Budget function to copy from existing G/L budget entries or from G/L entries. Because you can use options like date change formulas and adjustment factors, the Copy Budget function can save you time when you create budgets for different periods. Copy Budget Batch Job To access the Copy Budget function, follow these steps: 1. In the Search box, type "G/L Budgets" and select the related link. 2. Double-click a budget name to open the Budget page. 3. On the Home tab on the ribbon, click Copy Budget. FIGURE 4.6: COPY G/L BUDGET 4-16

129 Module 4: Budgets Note: The Copy Budget function is also available from the G/L Account Balance/Budget and G/L Balance/Budget pages. You use the Copy from area to determine where the copied budget entries come from. The fields within this area are specified based on the selection in the Source field: G/L Entry - the budget is based on actual G/L entries for a specified period. When you select G/L Entry, specify the following: o o An account range and a date range in the G/L Account No. and Date fields to determine the information to be copied. Whether to include Closing Entries. G/L Budget Entry - the budget is based on G/L Budget entries of an existing budget. When you select G/L Budget Entry, specify the following: o Existing Budget Name to copy from. o Account range and a date range in the G/L Account No. and Date fields to filter the information copied. For both Source options, choose the Dimensions field and follow these steps: Click to select the Selected check box for each dimension to be copied to the new budget entries. Set additional filters for the copying process by defining Dimension Value Filters. You use the Copy to area to specify where the copied budget information is to be sent. The following fields are included: Budget Name - enter the name of the new budget or click the field to select an existing budget name. G/L Account No. - enter the G/L account number if one or more ledger entries must be copied to one G/L account. The Apply area includes several calculation options that you can use when you copy budgets. This includes the following: Adjustment Factor - enter an adjustment factor that the source entries are multiplied by during the copy process. For example, an adjustment of 1.1 increases the amounts by 10 percent and an adjustment of.89 decreases the amounts by 11 percent. 4-17

130 Finance Advanced in Microsoft Dynamics NAV 2013 Rounding Method - specify how the new budget entries are rounded. Date Change Formula - enter a formula that calculates the date for the new entries based on the entries being copied. For example, enter 1M for the next month. Date Compression - compress the entries copied by a selected period to reduce the number of new entries created. Demonstration: Copy Budget Entries Scenario: Phyllis, the accounting manager at CRONUS International Ltd., is asked to prepare an expense budget for December Because she expects that the company will make the same expenses as in the same period in 2013, Phyllis decides to create the budget based on actual G/L entries. To reduce the data entry time, Phyllis decides to use the Copy Budget function with the following criteria: Increase the December 2013 amounts by 4 percent. Round the budget amounts to tenths. Create budget entries by department. Demonstration Steps 1. Create a new budget named 2014-EXP. a. In the Search box, type "G/L Budgets" and then click the related link. b. In Home tab on the ribbon, click New. c. In the Name field, type "2014-EXP". d. In the Description field, type "2014 Expense budget". e. Click OK. 2. Fill in the Copy Budget window. a. In the G/L Budget Names window, select the 2014-EXP line, and then in the Home tab on the ribbon click Edit Budget. b. In the Home tab on the ribbon, click Copy Budget. c. In the Source field, click the drop-down list and select G/L Entry. d. In the G/L Account No. field, enter e. In the Date field, enter f. In the Closing Entries field, click the drop-down list, and select Exclude. g. In the Dimensions field, click the Department dimension. h. Click OK. 4-18

131 Module 4: Budgets i. Under Copy to, in the Budget Name field, click the drop-down list and select 2014-EXP budget. j. In the Adjustment Factor field, type "1.04". k. In the Rounding Method field, click the drop-down list and select TEN. l. In the Date Change Formula field, type "+1Y". m. Click OK. n. Click Yes to start the copy process. o. Click OK. p. In the Filters FastTab of the Budget window, enter the following filters: Date Filter: G/L Account Filter: You can now review the entries for December Notice that the amounts are rounded to tenths. Compared with the G/L account balance of December 2013, the copied budget is four percent higher. 4-19

132 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 4.2: Copy a Budget Scenario Some weeks have passed since you created the January 2015 sales budget. You are now asked to create new sales budget entries for February February sales are budgeted to be 10 percent greater than those in January. You decide to use the Copy Budget function instead of manually entering the budget. Review the February entries after you run the copy function. Exercise 1: Copy a Budget Task 1: Access the Copy G/L Budget Batch Job High Level Steps 1. Open the G/L Budget, and open the Copy Budget function. Detailed Steps 1. Open the G/L Budget, and open the Copy Budget function. a. In the Search box, type "G/L Budgets", and select the related link. b. Select the REGION15 budget, and then on the ribbon click Edit Budget. c. In the Home tab on the ribbon, click Copy Budget. Task 2: Use the January 2015 Sales Budget to Copy From and To High Level Steps 1. Using budget entries, copy from the January 2011 sales budget. Detailed Steps 1. Using budget entries, copy from the January 2011 sales budget. a. In the Source field, select G/L Budget Entry. b. In the Budget Name field, select REGION15. c. In the Date field, enter and press Enter. d. Under Copy to, in the Budget Name field, select REGION15. e. In the Adjustment Factor field, type "1.1" and press Enter. f. In the Date Change Formula field, type "1M" and press Enter. g. Click OK. h. Click Yes to start the copy process. i. Click OK. 4-20

133 Task 3: Open the February Budget and Review the Entries High Level Steps 1. Access and review the February entries. Detailed Steps 1. Access and review the February entries. a. In the Date field, enter b. Set the View by field to show Month. Module 4: Budgets c. Review the entries, noticing that the filters are set and amounts are increased by 10 percent. 4-21

134 Finance Advanced in Microsoft Dynamics NAV 2013 Exporting and Importing Budgets Microsoft Dynamics NAV 2013 provides the option of creating budgets by using export and import functions. You can export budgets to Excel by using the Export Budget to Excel batch job. As soon as budgets are exported, you can do the following: Use Excel to modify and add to the budget. Create new budgets based on the exported budget figures. You can import budgets from Excel by using the Import Budget from Excel batch job. When you import budgets from Excel, you have the following possibilities: Import previous exported budgets from Microsoft Dynamics NAV. Create new budgets entries. Add budget entries to an existing budget. Note: Before you create a budget in Excel, we recommend that you export a budget from Microsoft Dynamics NAV 2013 to obtain the correct format. Export Budget to Excel Batch Job You can access the Export Budget to Excel batch job from the Budget page by clicking Export to Excel in the Home tab on the ribbon. This batch job contains two sections: Options G/L Budget Entry The G/L Budget Entry FastTab is automatically populated with the Budget Name, Global Dimension, and Budget Dimension filters specified on the Filter FastTab. These filters determine the entries exported to Excel and can be changed. However, only the budget dimensions contained on the selected budget can be used. Note: If filters are set for dimensions on the G/L Budget Entry FastTab, the same dimensions must be specified on the Options tab in the Column Dimensions field. If the same dimensions are not used, dimension information is lost when the budget is exported to Excel. 4-22

135 Module 4: Budgets FIGURE 4.7: EXPORT BUDGET TO EXCEL The Options FastTab contains the following fields: Start Date - identifies the first date to be included in the exported budget. No. of Periods - identifies the number of accounting periods to be included in the exported budget. The total time for the budget is determined by the combination of this field and the Period Length field. Period Length - uses a formula to determine the length of the accounting periods to be included in the exported budget. For example, 1M for one month. Column Dimensions - determines which dimensions are displayed as columns in the exported budget. These must include the dimensions set as filters on the G/L Budget Entry tab. 4-23

136 Finance Advanced in Microsoft Dynamics NAV 2013 Include Totaling Formulas - If selected, creates sum formulas in Excel based on the Totaling fields used in the Chart of Accounts window. Using this function means that if you alter budget figures in Excel, the Excel cells used as totaling fields are at the same time updated. You must specify the Start Date, No. of Periods, and Period Lengths fields to run the export batch job. Note: The settings in the Show as Lines and Show as Columns fields do not affect the budget export. The exported budget always displays the lines as G/L accounts and the columns (displayed as dimensions and periods) are determined in the Export to Excel batch job. Exported Budgets When you have exported the budget, the Excel spreadsheet has the following base structure: The Budget Name and Dimension filters appear in the upper-left. The G/L accounts appear in the rows. The dimensions, if they are specified, and periods appear in the columns. To import budgets into Microsoft Dynamics NAV 2013, the base structure of the exported budget must not change. Therefore, we recommend that you create the budget structure in Microsoft Dynamics NAV 2013 and then run the export process. You can add more dimension columns and dimension value filters after the export - but before importing the completed budget amounts - as long as these changes are made to both the excel spreadsheet and budget dimensions in Microsoft Dynamics NAV When you have made all changes, save the Excel spreadsheet. Import Budget from Excel Batch Job You can access the Import Budget from Excel batch job from the Budget page by clicking Import from Excel in the Home tab on the ribbon. This batch job contains two options: Import from Import to 4-24

137 Module 4: Budgets FIGURE 4.8: IMPORT BUDGET FROM EXCEL The fields on the Options FastTab include the following: Workbook File Name - specifies the path of the saved Excel budget. Worksheet Name - identifies the worksheet from the Excel workbook to be imported. Budget Name - specifies the budget in Microsoft Dynamics NAV 2013 to which entries will be imported. Option - identifies the method that is used to import budget entries. The options are as follows: o o Replace Entries: Imported entries replace existing entries with the same dimension, date, and G/L account combination. Add Entries: Imported entries are added to existing entries with the same dimension, date, and G/L account combination. Use this option to create a single consolidated budget from several other individual budgets created in separate Excel worksheets. Description - specifies a description that is assigned to the imported budget entries to help differentiate between other budget entries. Note: Before importing the budget, close Excel. 4-25

138 Finance Advanced in Microsoft Dynamics NAV 2013 Module Review Module Review and Takeaways The budget sections explained the G/L Budget page and setting up budgets. The various processes available when you work with budget entries were also explained. This includes the following: Changing and adding dimensions. Deleting and copying budget entries. Exporting and importing budgets. Although budgeting is not a required component of the program, this feature provides better insight into a company's financial status. Test Your Knowledge Test your knowledge with the following questions. 1. When you import budgets from Excel, what option is best suited to create a single consolidated budget from several other individual budgets created in separate Excel worksheets? ( ) Append Entries ( ) Add Entries ( ) Replace Entries ( ) Combine Entries 2. What is the maximum number of dimensions that you can use in a budget? ( ) 2 ( ) 4 ( ) 6 ( )

139 Module 4: Budgets 3. In the Copy Budget function, what adjustment factor is used to increase the budgeted amounts by 15 percent? ( ).15 ( ) 1.5 ( ) 1.15 ( ) What is not true about the Copy Budget function? ( ) You can select dimensions to be copied to the new budget entries. ( ) You can use dimension value filters in the copy process. ( ) You can use G/L entries as the source for the new budget entries. ( ) You can choose to add or replace entries. 5. Which of the following is not an option in the Show as Lines and Show as Columns fields? ( ) Business Unit ( ) Dimension Value ( ) G/L Account ( ) Period 4-27

140 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Solutions Module Review and Takeaways 1. When you import budgets from Excel, what option is best suited to create a single consolidated budget from several other individual budgets created in separate Excel worksheets? ( ) Append Entries ( ) Add Entries ( ) Replace Entries ( ) Combine Entries 2. What is the maximum number of dimensions that you can use in a budget? ( ) 2 ( ) 4 ( ) 6 ( ) 8 3. In the Copy Budget function, what adjustment factor is used to increase the budgeted amounts by 15 percent? ( ).15 ( ) 1.5 ( ) 1.15 ( ) What is not true about the Copy Budget function? ( ) You can select dimensions to be copied to the new budget entries. ( ) You can use dimension value filters in the copy process. ( ) You can use G/L entries as the source for the new budget entries. ( ) You can choose to add or replace entries. 4-28

141 Module 4: Budgets 5. Which of the following is not an option in the Show as Lines and Show as Columns fields? ( ) Business Unit ( ) Dimension Value ( ) G/L Account ( ) Period 4-29

142 Finance Advanced in Microsoft Dynamics NAV

143 MODULE 5: COST ACCOUNTING Module Overview The Cost Accounting module supplements financial management from Microsoft Dynamics NAV 2013 with operational accounting. There are four categories of master data in cost accounting: Objectives Cost types and the chart of cost types. Cost centers / cost accounting master data. Cost objects. Allocations. The objectives are: Explain the workflow in Cost Accounting. Explain and set up Chart of Cost Types, Chart of Cost Centers, Chart of Cost Objects, and Cost Accounting Setup. Explain the relationship between the cost accounting and general ledger application areas. Set up cost journals. Explain how to create cost entries either through a transfer from G/L entries or through posting the cost journal. Explain and set up cost budgets by using different copy functions. Explain the transfer from budget to actual. Explain and set up cost allocations. Explain static and dynamic allocations. Explain how to allocate costs and cost budgets. Explain the cost registers and cost budget registers. Explain the deletion of cost entries and cost budget entries. Explain different cost accounting reports. Provide tips and tricks. 5-1

144 Finance Advanced in Microsoft Dynamics NAV 2013 Workflow in Cost Accounting The following section describes the workflow in cost accounting by explaining the functions and relationships in the Cost Accounting module of Microsoft Dynamics NAV Functions of Cost Accounting In cost accounting, unlike the general ledger, effective operational costs are captured and evaluated. The goal is to exactly analyze the costs per cost center and cost object, and with that analysis, to create a dependable foundation for the cost accounting. FIGURE 5.1: FUNCTIONS OF COST ALLOCATIONS 5-2

145 Module 5: Cost Accounting Cost centers are most frequently departments and profit centers that are largely responsible for costs and income. Cost objects are products, product groups, or services of a company the finished goods of a company that carry the costs. Operational costs can largely be transferred from the general ledger. Pure operational costs, internal charges, and allocations are recorded and posted in cost accounting. Overhead costs are first posted to cost centers and then later, charged to cost objects. This might be done, for example, in a sales department that sells several products at the same time. Direct costs can be directly allocated to a cost object, such as a material purchase for a specific product. The general ledger chart of accounts and the chart of cost types frequently have similar structures. The allocation base used and the exactness of the allocation definition have an important influence on the results of the cost accounting. The allocation definition is used to allocate costs first from so-called pre-cost centers to main cost centers and second from cost centers to cost objects. In the cost distribution sheet, the results from the cost centers and cost objects are contrasted. The allocation entries are especially interesting in contrasting the two. 5-3

146 Finance Advanced in Microsoft Dynamics NAV 2013 Relationships in Cost Accounting The chart of accounts in the general ledger and the chart of cost types are closely connected. The cost center and cost object can be connected to any of the dimension codes. Generally, this is the Global Dimension 1 Code and Global Dimension 2 Code, which is defined on the General Ledger Setup page. FIGURE 5.2: RELATIONSHIPS IN COST ACCOUNTING General ledger entries, allocation entries, and cost entries captured by the user become cost entries by using the journal lines and the Cost Journal Posting batch job. When users post the cost journal, the program creates an entry in the cost registers. Allocations are defined in both the allocation source and allocation target tables. Most of the statistics and reports are based on the posted cost entries. Setting Up Cost Accounting Cost Accounting in Microsoft Dynamics NAV contains the following features: Cost accounting contains a freely definable chart of cost types with a structure and functionality similar to the general ledger chart of accounts. Users can create the chart of cost types automatically based on the general ledger income statement accounts. 5-4

147 Module 5: Cost Accounting Users can summarize several general ledger accounts in one cost type. Users can freely define cost centers and cost objects, and can supplement these with subtotals and titles, and also sort them. Cost centers and cost objects can be transferred and synchronized from the so-called "key dimensions" in the general ledger. Chart of Cost Types The chart of cost types for the operational accounting has almost the same function as the chart of accounts for the general ledger. In small and mid-size businesses, these two are frequently structured similarly. This makes it possible to transfer the chart of accounts from the general ledger and then customize it to fit your cost accounting needs. However, you can also build the chart of cost types in a way that is completely independent of the general ledger chart of accounts. Cost types are set up and maintained in either the Cost Type Card or the Chart of Cost Types page. To open the Chart of Cost Types page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Chart of Cost Types. FIGURE 5.3: CHART OF COST TYPES 5-5

148 Finance Advanced in Microsoft Dynamics NAV Select cost type 7210 Purchase Raw Mat., and then click Edit. FIGURE 5.4: COST TYPE CARD 4. Expand the General FastTab 5. The Chart of Cost Types has almost the same functionality and structural setup as the Chart of Accounts in the General Ledger. However, the following fields are specific for the Chart of Cost Types. o o No. The number of the cost type is frequently the same as the corresponding income statement account in the general ledger. However, users can define the number they want. The only rule is that the numbers must appear in ascending order. Type The options are as follows: Cost Type Heading Total Begin-Total End-Total o Totaling Range of the subtotals. 5-6

149 Module 5: Cost Accounting o Cost Classification The program uses this option as a filter, such as when a user wants to analyze only the cost types that contain fixed costs. The setup has no other effect on the processing of the cost accounting. The options are as follows: Unidentified Fixed Variable Step Variable o o o o o o Fixed Share In this text field, users can enter a comment that further explains the setup in the Cost Classification field. G/L Account Range Users establish which general ledger accounts to transfer to this cost type. With a 1:1 relationship between a G/L account and a cost type, users only enter one G/L account number. If there are several G/L accounts to summarize in one cost type, enter the range, such as The field is filled by the program if users create the cost type automatically from the general ledger. However, users can change it later, if it is necessary. Cost Center Code & Cost Object Code These codes serve as a default value for cost posting that is captured later in the cost journal. Combine Entries Users set this option if they want to later transfer general ledger entries as a combined entry per Day or Month. The None option indicates that each general ledger entry should be transferred individually to cost accounting. Balance This field shows the balance of all entries in the cost type. Drill-down to show the individual cost entries that contribute to this balance. With the FlowFilters Cost Center Filter and Cost Object Filter, users restrict the balance shown to only the entries that fit the filters. Balance to Allocate This field shows the net amount that can still be allocated. The entry in the Allocated field in the Chart of Cost Types determines whether a cost entry is a part of this field. 6. Click OK to close the Cost Type Card page. Indent Cost Types Batch Job One of the batch jobs that is available on the Chart of Cost Types page is the Indent Cost Types. This visually indents the chart of cost types so that the sums of subtotals can be checked and updated. 5-7

150 Finance Advanced in Microsoft Dynamics NAV 2013 Transferring the Chart of Cost Types from the General Ledger The Chart of Cost Types is frequently structured similarly to the income statement accounts in the Chart of Accounts. If this is the case, we recommend that users transfer the general ledger Chart of Accounts to the Chart of Cost Types by using a batch job, and then customize if it is necessary. To transfer the general ledger income statement accounts to the Chart of Cost Types page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Chart of Cost Types. 3. On the Home tab, click Get Cost Types from Chart of Accounts. 4. Click Yes to start the batch job. FIGURE 5.5: GET COST TYPES FROM CHART OF ACCOUNTS BATCH JOB 5. Click OK. Note: All general ledger income statement accounts are transferred, regardless of the type, except those general ledger accounts that have the same number as already existing cost types. Also when a general ledger account is included in the G/L Account Range of an existing cost type, that general ledger account will not be transferred as a cost type. 5-8

151 Best Practices Module 5: Cost Accounting Cost accounting uses the principle of double-entry accounting so that one-sided postings are not allowed. We recommend that you observe the following rules in the setup of the chart of cost types: Transfer the general ledger entries of all income statement accounts to cost accounting. This means that the income statement and the operating value per balance will correspond, as long as no cost postings are made. For pure cost postings, the program should always use the helping cost type actual accruals as a balancing account. By doing this, the following accounting relationship is created: Income (G/L) = Operational Value + Actual Accruals Relationship Between the Cost Type and the General Ledger Account The connection between the cost type and the general ledger account is saved in the cost type and in the general ledger account: The G/L Account Range field in the Cost Type table establishes which G/L accounts belong to a cost type. The Cost Type No. field in the Chart of Accounts establishes which cost type a G/L account belongs to. To view the connection from the G/L account, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > Chart of Accounts. 3. Select G/L account 7110, and then click Edit. 4. Expand the Cost Accounting FastTab. 5. Notice that the Cost Type No. field contains the cost type Click OK to close the G/L Account Card page. 5-9

152 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 5.6: G/L ACCOUNT CARD COST ACCOUNTING FASTTAB The two fields are filled automatically by the program when you use the Get Cost Types from Chart of Accounts batch job. There is a n:1 relationship between the G/L accounts and cost types. This means that several G/L accounts can belong to one cost type, but each G/L account belongs to at most one cost type. Depending on how much later the G/L entries should be transferred to cost accounting, there are several opportunities to define this connection and to fill in the two fields: Connection G/L Account Range Cost Type No. One G/L account per cost type. Several G/L accounts for one cost type. Cost types with no corresponding G/L accounts. G/L accounts whose entries will not be transferred. One G/L account G/L account range (for example, ) (empty) One cost type For each G/L account in the range, there is only one cost type. (empty) 5-10

153 Cost Types with No Relationship to the General Ledger Module 5: Cost Accounting There are three situations when you might have cost types with no relationship to general ledger accounts: Accounts of the operational accounting such as Calc. Interest and Depreciation that only take costs from the operational accounting. Helping cost types, such as cost types 9901 and 9903 that are used as credit and debit accounts for allocations. The helping account 9920, which contains actual accruals. It shows the difference between costs and the expense from the general ledger. Register Cost Types in Chart of Accounts The Register Cost Types in Chart of Accounts batch job updates the relationship between the chart of accounts and the chart of cost types. The Cost Type No. field is filled and checked to make sure that each G/L account is related to only one cost type. The program automatically runs this batch job before transferring G/L entries to cost accounting. Automatic Transfer and Combined Entries In cost accounting, users do not generally require the same level of detail as is required in the general ledger. Therefore, a user can transfer general ledger entries to a cost type by using a combined posting. Users can specify whether a cost type receives combined entries with the Combine Entries field in the cost type definition. The following table describes the different options: Combine Entries None Day Month Description Each G/L entry will be transferred individually to the corresponding cost type. G/L entries with the same posting date will be transferred as one entry to the corresponding cost type. All G/L entries in the same calendar month will be transferred as one entry to the corresponding cost type. Note: If the Autotransfer from G/L check box is selected on the Cost Accounting Setup page, the program updates the cost accounting after every posting in the general ledger, and combined entries are not possible. 5-11

154 Finance Advanced in Microsoft Dynamics NAV 2013 Chart of Cost Centers Cost centers are set up and maintained in either the Cost Center Card or the Chart of Cost Centers page. To open the Chart of Cost Centers page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Chart of Cost Centers. FIGURE 5.7: CHART OF COST CENTERS 5-12

155 3. Select cost center VEHICLE, and then click Edit. Module 5: Cost Accounting FIGURE 5.8: COST CENTER CARD 4. Expand the General FastTab. 5. The following fields are available on the Cost Center Card page. o o o Code The abbreviation of the cost center. Users can create this from a combination of letters and numbers. Name Descriptive name of the cost center. Cost Subtype - This field is only for information and is not used by the program. The options are as follows: Service Cost Center Aux. Cost Center Main Cost Center o Line Type The options are as follows: Cost Center Heading Total Begin-Total End-Total 5-13

156 Finance Advanced in Microsoft Dynamics NAV 2013 o o o o o Totaling Range of the subtotals. Responsible Person Users can specify the person responsible for the cost center. A User ID can be selected from the User table. This is only for information purposes. Sorting Order Typically, the cost centers are sorted in ascending order by using the Code field. In the Sorting Order field, users can establish a different sorting order. The Cost Center that must appear first should have a value of A or 1 in this field. If several lines have the same entry, the program uses the Code field as a secondary criterion for sorting. Balance At Date This field shows the balance of all postings in the cost type up to the end date. Balance to Allocate This field shows the balance that has not yet been allocated. The entry in the Allocated field in the Cost Entry table determines whether the entry is included in this FlowField. The value in the Allocated field is set during the automatic allocation. 6. Click OK to close the Cost Center Card page. Indent Cost Centers Batch Job The Indent Cost Centers batch job visually indents the chart of cost centers so that the sums of subtotals can be checked and updated. Get Cost Centers from Dimension The Chart of Cost Centers is frequently structured similarly to the dimension for cost centers. If this is the case, we recommend that users transfer the dimension Cost Center to the Chart of Cost Centers by using a batch job, and then customize if it is necessary. To use the batch job, the following rules must be followed: When you implement cost accounting, you must select a dimension code as a cost center, through the Cost Accounting Setup page. Most costs are already allocated to the cost center at the time of posting the general ledger (and when you post purchases and sales). Therefore, these cost centers must exist in the dimension linked to cost centers. Frequently, there are more cost centers set up in cost accounting than in the dimension linked to cost centers. In the general ledger, it is usually only the cost centers for the first level of direct costs and initial costs that are necessary. In cost accounting, there are additional helping cost centers and cost centers for additional allocation levels. 5-14

157 Module 5: Cost Accounting To transfer the dimension linked to cost centers to the Chart of Cost Centers page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Chart of Cost Centers. 3. On the Home tab, click Get Cost Centers from Dimension. 4. Click Yes to start the batch job. Note: You do not select the dimension you want to transfer. The batch job automatically takes the dimension that was set up on the Cost Accounting Setup page. 5. Click OK. Sorting Order in the Chart of Cost Centers If the sorting order in the Chart of Cost Centers is controlled by the Sorting Order field, the program sets the following restrictions: You can have only one level of Begin- and End-Totals. In the Totaling field, you set ranges of cost centers not using the range operator (..) but instead using the or operator, which is the vertical line ( ). Chart of Cost Objects Cost objects are set up and maintained in either the Cost Object Card or the Chart of Cost Objects page. To open the Chart of Cost Objects page, follow these steps: 1. On the navigation pane, click Departments. 5-15

158 Finance Advanced in Microsoft Dynamics NAV Click Financial Management > Cost Accounting > Chart of Cost Objects. FIGURE 5.9: CHART OF COST OBJECTS WINDOW 3. Select cost object FURNITURE, and then click Edit. FIGURE 5.10: COST OBJECT CARD 4. Expand the General FastTab. 5-16

159 Module 5: Cost Accounting 5. The following fields are available on the Cost Object Card page: o o o Code The abbreviation of the cost object. Users can create this from a combination of letters and numbers. Name Descriptive name of the cost object. Line Type The options are as follows: Cost Object Heading Total Begin-Total End-Total o o o Totaling Range of the subtotals. Sorting Order Typically, the cost centers are sorted in ascending order by using the Code field. In the Sorting Order field, users can establish a different sorting order. The cost center that must appear first should have a value of A or 1 in this field. If several lines have the same entry, the program uses the Code field as a secondary criterion for sorting. Net Change This field corresponds to the Balance at Date field but the result is influenced by the beginning date in the Date Filter. 6. Click OK to close the Cost Object Card page. Demonstration: Create a New Cost Object In the following example, a new cost object COMPUTERS for the sale of computer packages is created. Demonstration Steps 1. Open the Chart of Cost Objects. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Chart of Cost Objects. 2. Create the new cost object COMPUTERS. a. Click New. b. In the Code field, enter COMPUTERS. c. In the Name field, enter Sales of Computer Packages. d. In the Sorting Order field, enter 80. e. Click OK to close the Cost Object Card page. 5-17

160 Finance Advanced in Microsoft Dynamics NAV 2013 Get Cost Objects From Dimension The Chart of Cost Objects is frequently structured similarly to the dimension for cost objects. If this is the case, we recommend that users transfer the dimension "Cost Center" to the Chart of Cost Objects by using a batch job, and then customize if it is necessary. To use the batch job, follow these rules: When you implement cost accounting, you must select a dimension code as a cost object, through the Cost Accounting Setup page. Most costs are already allocated to the cost object at the time of posting the general ledger (and when you post purchases and sales). Therefore, these cost objects must exist in the dimension linked to cost objects. Frequently, there are more cost objects set up in cost accounting than in the dimension linked to cost objects. In the general ledger, it is usually only the cost object for the first level of direct costs and initial costs that are necessary. In cost accounting, there are additional helping cost objects and cost objects for additional allocation levels. To transfer the dimension linked to cost objects to the Chart of Cost Objects page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Chart of Cost Objects. 3. On the Home tab, click Get Cost Objects from Dimension. 4. Click Yes to start the batch job. Note: You do not select which dimension you want to transfer. The batch job automatically takes the dimension linked to cost objects on the Cost Accounting Setup page. 5. Click OK. 5-18

161 Cost Accounting Setup Module 5: Cost Accounting To open the Cost Accounting Setup page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Accounting Setup. FIGURE 5.11: COST ACCOUNTING SETUP WINDOW 3. Expand the General FastTab. o Starting Date for G/L Transfer From this date, the program transfers general ledger entries to cost accounting. Enter a date if, for example, you have worked with the general ledger for a long time and want to start the cost accounting only later. Note: As soon as the batch job to transfer G/L entries runs one time, you can no longer change this date. o Align G/L Account - Use this field to establish how a change in the chart of accounts will be carried over to the cost accounting. The options are as follows: No Alignment If users change the chart of accounts, the program does not make a corresponding change in the chart of cost types. 5-19

162 Finance Advanced in Microsoft Dynamics NAV 2013 Automatic If users change the chart of accounts, the program automatically makes a corresponding change in the chart of cost types. Prompt If users change the chart of accounts, they receive a message asking them if they want to make a corresponding change in the chart of cost types. o o o Align Cost Center Dimension & Align Cost Object Dimension Use this field to establish how changes in dimension codes linked to cost center and cost object are carried over to the chart of cost centers and chart of cost objects. Autotransfer from G/L If you select this, the program updates cost accounting after each G/L posting. The entries are processed in a batch as a combined entry and transferred to cost accounting. Check G/L Postings If you select this, the program checks when you post to the general ledger whether the predefined cost center (or cost object) already exists in cost accounting. 4. Expand the Allocation FastTab. o Last Allocation ID If users do not enter an allocation ID when they create an allocation definition, you can set up a number series for allocations. The default value is 1. o Last Allocation Doc. No. During allocation, the program gives all entries that were generated with the same allocation ID a document number. The last document number is stored here. The default value is UM1. 5. Click OK to close the Cost Accounting Setup page. Cost Entries Cost entries can originate from several sources: Automatic transfer of general ledger entries. Manual cost posting for pure cost entries, internal charges, and manual allocations. Automatic allocation postings for actual costs. Transfer of budget entries to the general ledger. Note: This lesson describes only the first two categories. Allocations and budgets will be handled in upcoming lessons of this module. 5-20

163 Transfer G/L Entries to CA Module 5: Cost Accounting Usually, general ledger entries are transferred to cost accounting (CA) with a batch job. However, the transfer can also run automatically after each G/L posting. Preparing the Transfer When transferring G/L entries with the batch job, the program uses all general ledger entries that have not already been transferred. It is only possible to make corrections with a manual correction posting. You can avoid having to make corrections following these steps to prepare the transfer: Check the Chart of Cost Types. Is the G/L Account Range field filled correctly for all cost types that take entries from the general ledger? Check the Chart of Account. Any entries for income statement accounts that do not have a Cost Type No. will not be transferred. Do all general ledger entries that will be transferred to cost accounting have a cost center code or a cost object code (through the dimensions)? Entries without a cost center or cost object are not transferred. To prepare for the first transfer without transferring all posted G/L entries, in the Starting Date for G/L Transfer field in the Cost Accounting Setup page, select a later date. Before the transfer, the program automatically checks the relationship between the Chart of Cost Types and the Chart of Accounts so that a G/L account is not accidentally designated for two cost types. Rules for the Transfer During the transfer, the program uses the following criteria to check whether and how the general ledger entries should be transferred: Only the G/L entries that have either a cost center or a cost object code are transferred. G/L entries that have neither a cost center nor a cost object code are not transferred. For G/L entries that have both a cost center code and a cost object code, the cost center code takes precedence. This helps avoid a situation where a cost type appears in both a cost object and a cost center and is therefore counted doubly in the statistics. G/L entries with an amount of zero are not transferred. If the Document No. field of the G/L entry is empty, it will appear with a document number of 0000 in the cost entries. G/L entries with a G/L account that is deleted are not transferred. 5-21

164 Finance Advanced in Microsoft Dynamics NAV 2013 G/L entries with a G/L account that is not of the type Income Statement are not transferred. G/L entries with a G/L account that is not assigned a cost type are not transferred. G/L entries that are transferred to a cost type that allows combined entries are transferred either monthly or daily as a combined entry. G/L entries with a Posting Date before the Starting Date for G/L Transfer in the cost accounting setup are not transferred. G/L entries with a closing date are not transferred. These are typically only those entries that set back the balance of the income statement at the end of the year. Transferring G/L Entries To transfer general ledger entries to cost accounting, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Cost Accounting > Transfer GL Entries to CA. A warning message box appears. FIGURE 5.12: TRANSFER GL ENTRIES TO CA BATCH JOB 3. Click Yes to run the batch job. 4. Click OK. 5-22

165 Module 5: Cost Accounting During the transfer of G/L entries, the program creates connections in the entries in the G/L Entry table, the Cost Entry table, and the Cost Registers table to make it possible to trace the relationship between cost entries and general ledger entries at any time. G/L Entries For each G/L entry that is transferred to cost accounting, the program fills the Cost Entry No. field. Cost Entries o For each cost entry, the program saves the entry number of the corresponding G/L entry in the GL Entry No. field. For combined entries, the program saves the entry number of the last G/L entry. This is the entry with the highest entry number. o o The G/L Account field contains the number of the general ledger account that the cost entry came from. For single entries, the program transfers the posting text from the G/L entry to the Description field. Combined entries are specially marked in the Description field. For example, for a combined entry for October, the text might be Entries, October Registers In the Registers, the program creates an entry with the following: o The Source field value Transfer from G/L. o The first and last entry numbers of the G/L entries processed. o The first and last entry numbers of the cost entries created. Set Up Cost Journals In the cost journal, users can post entries that neither come from G/L nor are automatically generated by allocations. Users might have to do this for the following cases: Pure cost entries. Internal charges between cost centers. Manual allocations. Corrective entries between cost types, cost centers, and cost objects. Users can post either individually or on a recurring basis. To set up a cost journal, follow these steps: 1. On the navigation pane, click Departments. 2. Click Administration, and then click Application Setup. 3. On the Application Setup page, click Financial Management > General > Cost Journal Templates. 5-23

166 Finance Advanced in Microsoft Dynamics NAV Click New. 5. Fill in the Name and Description fields. 6. On the Navigate tab, click Batches. 7. Click New. FIGURE 5.13: COST JOURNAL TEMPLATES AND BATCHES 8. Fill in the Name and Description fields. 9. In the Bal. Cost Type No. field, fill in the default balancing cost type. 10. The Bal. Cost Center Code and Bal. Cost Object Code field are automatically filled in with the default values from the balancing cost type. If you want to, change them here. Note: Either the Bal. Cost Center Code must be filled in, or the Bal. Cost Object Code, but not both. 11. The Delete after Posting check box specifies whether the posted journal lines are deleted. If the check box is cleared, you can use the posted journal lines again. After the posting, only the posting date is deleted. You can use the option for monthly recurring cost entries. 12. Click OK to close the Cost Journal Batches page. 13. Click OK to close the Cost Journal Templates page. 5-24

167 Demonstration: Posting in the Cost Journal Module 5: Cost Accounting In the following demonstration, we post an internal charge to the ADVERTISING cost type. Demonstration Steps 1. Open the cost journal and journal batch. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Journals. Note: With only one cost journal template set up, the journal immediately opens. When multiple cost journals are set up, the Cost Journal Templates page opens first, listing all the cost journals. Select the desired cost journal, and then click OK. c. Make sure that the DEFAULT cost journal batch is selected. 2. Fill in the cost journal lines. Filling in the cost journal resembles filling out the general journal. Pay extra attention to the following fields. a. In the Posting Date field, enter the work date. b. In the Document No. field, enter CJ0001. c. In the Cost Type No. field, enter 8410, which is the cost type for Advertising. Note: When you enter the cost type, the program fills the Cost Center Code, Cost Object Code and Description fields with default values from the cost type. d. Notice the Cost Center Code is automatically filled with the value ADVERT. e. Leave the Cost Object Code blank. f. In the Amount field, enter LCY. Note: You can use the Choose Columns feature to make the Debit Amount and Credit Amount fields visible. 5-25

168 Finance Advanced in Microsoft Dynamics NAV 2013 g. In the Bal. Cost Type No. field, enter 9920 Actual Accrual. h. Notice the Bal. Cost Center Code field is automatically populated with the default value from the balancing cost type. i. Leave the Bal. Cost Object Code field blank. Note: You can either use the Bal. Cost Type No. field or create multiple debit and credit lines to combine entries. 3. Post the cost journal. a. On the Actions tab, click Post. b. Click Yes to post the journal lines. c. Click OK. d. Click OK to close the Cost Journal page. The program tests the following before posting: Are both the Posting Date and the Document No. fields filled? Does the cost type exist and is it not blocked? Is either the cost center or the cost object filled? Does the total of the debit and credit entries per posting date balance? Is the posting date allowed? Note: The Document No. field is not considered when calculating the balance of the journal. The cost journal can be posted when different lines with different document numbers, but with the same posting date, are in balance. The details of the posting process are recorded in a new entry in the Registers. The cost register entry contains the first and last numbers for the new cost entries. 5-26

169 Lab 5.1: Using Cost Journals Module 5: Cost Accounting Scenario A cleaning expense of LCY was wrongfully posted to the cost center ADM. Make the correction in the cost journal and post the cleaning expense (cost type 8110) to cost center BUILDING. Exercise 1: Using Cost Journals Task 1: Using Cost Journals High Level Steps 1. Fill in the cost journal line. 2. Post the cost journal. Detailed Steps 1. Fill in the cost journal line. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Journals. c. Make sure that the DEFAULT cost journal batch is selected. d. In the Posting Date field, enter the work date. e. In the Document No. field, enter CJ0002. f. In the Cost Type No. field, enter 8110, which is the cost type for Cleaning expenses. g. The Cost Center Code is automatically filled with the value BUILDING. Change the value to ADM. h. Leave the Cost Object Code blank. i. In the Amount field, enter LCY. j. In the Bal. Cost Type No. field, enter k. Note the Bal. Cost Center Code field is automatically populated with the default value BUILDING. l. Leave the Bal. Cost Object Code blank. 2. Post the cost journal. a. On the Actions tab, click Post. b. Click Yes to post the journal lines. c. Click OK. d. Click OK to close the Cost Journal page. 5-27

170 Finance Advanced in Microsoft Dynamics NAV 2013 Cost Budgets Cost accounting in Microsoft Dynamics NAV 2013 contains the following features as related to budgets: Users can create as many cost budgets as they want, and these budgets have a similar functionality to that of the general ledger budget. Users can copy the cost budget to the general ledger budget or copy the general ledger budget to the cost budget. Users can transfer budgeted costs to actual costs. Note: The budgeting for cost accounting and for financial accounting is very similar. The following lesson only describes the details that are different in cost accounting. Budgets are handled in the module "Budgets" of this course. Cost Budgets can be created by using the following methods: Manually. Transferring budgets from the general ledger, by using the Copy G/L Budget to Cost Budget batch job. Copying cost budgets, by using the Copy Cost Budget to Cost Budget batch job. Demonstration: Copy G/L Budget to Cost Budget Batch Job Users can copy a budget from the general ledger to cost accounting. In the following example, copy the G/L budget for 2013 to create a new cost accounting budget for Demonstration Steps 1. Open the cost budget. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Budgets. c. Select the DEFAULT cost budget. d. On the Home tab, click Cost Budget per Period. 5-28

171 Module 5: Cost Accounting 2. Copy the G/L budget 2013 to a new cost budget CA2014. a. On the Home tab, click Copy G/L Budget to Cost Budget. b. Expand the Options FastTab to specify to which cost budget the general ledger budget must be copied. c. In the Budget Name field, click the drop-down list and then click New to create a new cost budget. d. In the Name field, enter CA2014. e. In the Description field, enter Cost Budget f. Click OK. g. In the Date Change Formula field, you can set a date formula that the program can use for changing the dates in the budget. To add one year to the G/L budget, enter 1Y in this field. h. Expand the G/L Budget Entry FastTab to specify which G/L budget must be transferred to the indicated cost budget. i. In the Budget Name filter field, enter FIGURE 5.14: COPY G/L BUDGET TO COST ACCTG. 5-29

172 Finance Advanced in Microsoft Dynamics NAV 2013 j. Click OK k. Click Yes to run the batch job. l. You receive a message that indicates the number of entries that will be transferred and the number of entries that will not be transferred. Click Yes. Note: Sometimes G/L budget entries are not transferred because there were either no corresponding G/L accounts defined or cost center and cost object were missing. 3. Review the new cost budget CA2014. a. On the Cost Budget per Period page, expand the General FastTab. b. In the Budget Filter field, enter CA2014. FIGURE 5.15: COST BUDGET PER PERIOD c. Use the filters in the General FastTab, to change the view of the Cost Budget per Period Matrix. You can drill-down on the amounts to view, change, delete, or add cost budget entries. 5-30

173 Copy Cost Budget to G/L Budget Batch Job Module 5: Cost Accounting Users can perform the Copy Cost Budget to G/L Budget batch job to perform the same operation in reverse, copying the cost budget figures to the general ledger budget. Note: The Copy Cost Budget to G/L Budget batch job is available from the Cost Budget per Period page, but not from the G/L Budget page. Demonstration: Copy Cost Budget to Cost Budget Batch Job Users can copy budget figures within a budget or from budget to budget. This function lets users copy a budget several times and enter a factor to increase or reduce the budget figures. For example, users can do the following: Copy the budget figures from January eleven times to set up the budget for February through December. Copy the budget figures from 2001 to 2002 and, as a default value, increase all the numbers by 20%. Transfer budget figures from one cost center to another cost center. Copy a budget with the name Maximum to a budget with the name Minimum and use the Maximum budget figures as a basis to set up the minimum variant. In the following example, copy the budget figures from CA2014 to a new budget, CA2015. The figures from January 2014 will serve as the basis for the whole year. First copy the budget for January 2014 from CA2014 to a new budget for 2015, CA2015, with the figures raised by 20%. Demonstration Steps 1. Copy budget CA2014 to a new budget CA2015 according to the scenario. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Budgets. c. Select budget CA2014. d. On the Home tab, click Cost Budget per Period. e. On the Home tab, click Copy Cost Budget to Cost Budget. f. Expand the Options FastTab to specify to which cost budget the cost budget has to be copied. g. In the Budget Name field, click the drop-down list and then click New to create a new cost budget. 5-31

174 Finance Advanced in Microsoft Dynamics NAV 2013 h. In the Name field, enter CA2015. i. In the Description field, enter Cost Budget j. Click OK. k. In the Amount multiplication factor field, enter 1.20 to indicate that the figures should increase by 20%. l. In the Date Change Formula field, enter 1Y to change the dates by 1 year. m. Expand the Cost Budget Entry FastTab to indicate which cost budget must be transferred to the indicated cost budget. n. In the Budget Name filter field, enter CA2014. o. In the Date filter field, enter 01/01/14..01/31/14. FIGURE 5.16: COPY COST BUDGET BATCH JOB 5-32

175 p. Click OK to copy the budget. q. Click Yes. r. Click Yes. Module 5: Cost Accounting s. On the Cost Budget per Period page, expand the General FastTab. t. In the Budget Filter field, enter CA2015. u. In the View By field, enter Month. v. In the View As field, enter Net Change. FIGURE 5.17: COST BUDGET PER PERIOD WINDOW 2. Copy the budget numbers for January 11 times and distribute them over the whole year. a. On the Home tab, click Copy Cost Budget to Cost Budget. b. Expand the Options FastTab to specify to which cost budget the cost budget must be copied. c. In the Budget Name field, enter CA2015. d. In the Amount multiplication factor field, enter e. In the No. of Copies field, enter 11. f. In the Date Change Formula field, enter 1M. g. Expand the Cost Budget Entry FastTab, to indicate which cost budget must be transferred to the indicated cost budget. h. In the Budget Name filter field, enter CA

176 Finance Advanced in Microsoft Dynamics NAV 2013 i. In the Date filter field, enter 01/01/14..01/31/14. FIGURE 5.18: COPY COST BUDGET BATCH JOB j. Click OK to copy the budget. k. Click Yes. l. Click Yes. 5-34

177 Module 5: Cost Accounting m. Notice when you look at the budget CA2015 on the Cost Budget per Period page, the budget for January 2015 is copied 11 times so that the same figures appear in every month of the year. FIGURE 5.19: COST BUDGET PER PERIOD WINDOW n. Click OK to close the Cost Budget per Period page. Transfer Budget to Actual In some companies, the people responsible for cost centers agree at the beginning of the year on a cost budget and then later shift these budgeted costs to cost centers (or cost objects). The Transfer Budget to Actual batch job is made for this purpose. By using filters correctly, users can work with a combination of actual costs and budget figures. To run the Transfer Budget to Actual batch job, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Budgets. 3. On the Home tab, click Transfer Budget to Actual. 4. Expand the Cost Budget Entry FastTab to indicate which cost budget figures must be transferred. 5. In the Budget Name filter field, enter the cost budget to transfer, for example, CA

178 Finance Advanced in Microsoft Dynamics NAV In the Date filter field, enter the period to transfer, for example, January FIGURE 5.20: TRANSFER BUDGET TO ACTUAL BATCH JOB 7. Click OK to run the batch job. 8. Click Yes. 9. Click Yes. The details of the posting process are recorded in a new entry in the Registers. The cost register entry contains the first and last numbers for the new cost entries. 5-36

179 Lab 5.2: Set Up a Cost Budget Module 5: Cost Accounting Scenario You have to set up a cost budget for all operating expenses (cost entries 8000 to 8695) for January 2014, based on the G/L budget of January CRONUS International Ltd. plans to reduce all costs compared to the G/L budget that was set up last year, as follows: Reduce the operating expenses with 20% for the ADM cost center. Reduce the operating expenses with 10% for the SALES cost center. Exercise 1: Set Up a Cost Budget Task 1: Set Up a Cost Budget High Level Steps 1. Create a new cost budget for 2014 (OE2014) by copying the G/L budget of Open the newly created cost budget OE Create the January 2014 figures for the ADM cost center. 4. Create the January 2014 figures for the SALES cost center. Detailed Steps 1. Create a new cost budget for 2014 (OE2014) by copying the G/L budget of a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Budgets. c. Select the DEFAULT cost budget. d. On the Home tab, click Cost Budget per Period. e. On the Home tab, click Copy G/L Budget to Cost Budget. f. Expand the Options FastTab to specify to which cost budget the general ledger budget must be copied. g. In the Budget Name field, click the drop-down list and then click New to create a new cost budget. h. In the Name field, enter OE2014. i. In the Description field, enter Operating Expenses j. Click OK. k. Leave the Date Change Formula field blank. l. Expand the G/L Budget Entry FastTab to specify which G/L budget must be transferred to the indicated cost budget. m. In the Budget Name filter field, enter

180 Finance Advanced in Microsoft Dynamics NAV 2013 n. In the G/L Account No. field, enter o. In the Date field, enter 01/01/14..01/31/14. p. In the Department Code field, enter ADM SALES. q. Click OK to run the batch job. r. Click OK to confirm the copy request. 2. Open the newly created cost budget OE2014. a. Expand the General FastTab. b. In the Budget Filter field, enter OE2014. c. In the View by field, select the Month option. d. In the View as field, select the Net Change option. 3. Create the January 2014 figures for the ADM cost center. a. On the Home tab, click Copy Cost Budget to Cost Budget. b. Expand the Options FastTab to specify to which cost budget the cost budget must be copied. c. In the Budget Name field, enter OE2014 d. In the Amount multiplication factor enter e. In the Date Change Formula field, enter 1Y. f. Expand the Cost Budget Entry FastTab to specify which cost budget must be copied from. g. In the Budget Name field, enter OE2014. h. In the Cost Center Code field, enter ADM. i. Click OK to run the batch job. j. Click Yes. 4. Create the January 2014 figures for the SALES cost center. a. On the Home tab, click Copy Cost Budget to Cost Budget. b. Expand the Options FastTab to specify to which cost budget the cost budget must be copied. c. In the Budget Name field, enter OE2014 d. In the Amount multiplication factor field, enter e. In the Date Change Formula field, enter 1Y. f. Expand the Cost Budget Entry FastTab to specify which cost budget must be copied from. g. In the Budget Name field, enter OE2014. h. In the Cost Center Code field, enter SALES. i. Click OK to run the batch job. j. Click Yes. 5-38

181 Cost Allocation Module 5: Cost Accounting Allocations move costs and revenues between cost types, cost centers, and cost objects. Microsoft Dynamics NAV 2013 provides flexibility when you define allocations. Basically, users can define as many allocations as they need. Each allocation consists of an Allocation Source and one or more Allocation Targets. For example, all costs for the cost type Building (an allocation source) can be allocated to the cost centers Workshop, Production, and Sales (three allocation targets). For each allocation, users can define an allocation level, a validity period, and a variant identifier. If users run an automatic cost allocation, they can use appropriate filters to select the allocation definitions to be handled in the batch job. The most important part of the allocation definition is the allocation base. The allocation base can be either static or dynamic: Static allocation bases are based on a definite value, such as square footage or an established allocation ratio, such as 5:2:4. Dynamic allocation bases depend on other, changeable values, such as the number of employees in a cost center or sales revenue of a cost object in a certain time period. Cost accounting in Microsoft Dynamics NAV 2013 contains the following features as related to allocation: Users can allocate actual values or for budget values. Users can create static allocations by using either fixed shares or percentages. Users can use dynamic allocations with 9 predefined allocation bases and 12 dynamic date ranges. There are 99 allocation levels. Users can use as many allocation variants they want. Users can define allocations with expiration date ranges. Users can freely define allocations between cost types, cost centers, and cost objects. Users can cancel allocations and posting processes. 5-39

182 Finance Advanced in Microsoft Dynamics NAV 2013 Setting Up Cost Allocation To set up allocations, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Allocations. 3. Select allocation BUILDING00, and then click Edit. FIGURE 5.21: COST ALLOCATION WINDOW The General FastTab contains information about the allocation source. The allocation source establishes which costs should be allocated. ID Users can freely define the ID. The program uses the ID to identify the allocation and to establish the connection to the allocation targets. If users do not want to define the ID themselves, they can press ENTER in the empty field. The program then uses the ID that follows the ID that appears in the Last Allocation ID field on the Cost Accounting Setup page. Level Users can define a level as a number between 1 and 99. The allocation posting will follow the order of the levels. The level might be important, for example, to make sure that first ADM is allocated to WORKSHOP before WORKSHOP is allocated to VEHICLE and PROD. Valid From & Valid To With these two dates, users can define the validity period for the allocation. All allocations will be processed that have allocation dates that fall within the validity period. If users do not define dates here, all dates are valid. 5-40

183 Module 5: Cost Accounting Variant With a variant code, users can group allocations. When they run the allocation, users can use a filter to select only the allocation definitions they want. Users can leave the variant code empty if they want to use only one variant. Cost Type Range Use this field to set up a filter to establish which cost types should be allocated. If all costs for a cost center are allocated, no range is defined. Cost Center Code Use this field to define the cost center with costs to be allocated. Cost Object Code Use this field to define the cost object with costs to be allocated. Most frequently, this field stays empty, because cost objects are rarely allocated to other cost objects. Credit to Cost Type The costs to be allocated will be credited (or debited) to the source cost center indicated here. It can be helpful to set up a helping cost type to later highlight the allocation postings in the statistics and reports. Blocked Use this field to deactivate the allocation by selecting this check box. The following table gives some examples that clarify how to define the Cost Type Range, Cost Center Code, and Cost Object Code fields for the allocation source. Allocation Cost Type Range Cost Center Cost Object The whole cost center PROD Only the cost types from 4000 to 4100 of the cost center ADM PROD ADM The whole cost object PAINT PAINT The Statistics FastTab contains the following fields: Allocation Source Type Use this field to define whether the allocation for all allocations should be used or only for actual or budget costs. Last Date Modified & User ID These fields can be used to establish when and by which users the allocation source was last used. Comment Use this field to enter a short additional description of the allocation. Total Share This FlowField contains the sum of the shares of the allocation targets. 5-41

184 Finance Advanced in Microsoft Dynamics NAV 2013 The Lines FastTab contains information about the allocation targets. The allocation targets determine where the costs should be allocated. Allocations to cost centers or cost objects differ only in that either the Target Cost Center or the Target Cost Object field is filled. Make sure that the cost center is allocated before the allocation to the cost object. Users can control this by assigning levels in the Level field. The Lines FastTab contains the following fields: ID & Line No. The program automatically assigns the ID and line number. The ID shows the relationship to the allocation source. The program assigns ascending line numbers to the allocation targets within an ID. Target Cost Type The target cost type determines to which cost type the allocation is debited. Target Cost Center & Target Cost Object These two fields define to which cost center or cost object the allocation should be debited. Only one of these fields can be filled, not both. Allocation Type The allocation type determines how much of the total costs of the allocation source should be allocated. The options are as follows: o o o All Costs Percent per share Amount per share Percent per Share If the allocation type is Percent per Share, enter the percentage here. Amount per Share If the allocation type is Amount per Share, enter the amount here. Static Base & Static Weighting The values in these two fields will be multiplied and carried over to the Share field. For example, you might define that the base of 2000 square feet for the area of a warehouse should be weighted with a factor of 0.8. Share For a static allocation, this field contains a definite value, or the value in this field is calculated by using the static base and static weighting. For dynamic allocations, the program calculates the share by using the dynamic base. Percent The share is calculated by Microsoft Dynamics NAV, dependent on all other allocation targets in a percentage rate. Base In this field, define whether the allocation is static or dynamic, meaning that it depends on a dynamic value. The various options in this field are described in the following sections. 5-42

185 Module 5: Cost Accounting No. Filter, Cost Center Filter, Cost Object Filter, Date Filter Code, and Group Filter For dynamic allocations, fill these five fields with the allocation base. For Static allocations, leave these fields blank. Share Updated on Date that the Share field was last changed. Last Date Modified Date that the allocation target was last updated. User ID User who last updated the allocation target. Comment Use this field to enter a short description for the allocation target. The allocation target lines can also be viewed as a card on the Cost Allocation Target Card page. To access this page, click Allocation, and then click Allocation Target Card in the Lines FastTab. The example shows how a predefined part of the allocation source BUILDING00 is allocated to the vehicle cost center. The program calculates LCY per share of 220 square feet. FIGURE 5.22: COST ALLOCATION TARGET CARD 5-43

186 Finance Advanced in Microsoft Dynamics NAV 2013 Allocation Type Frequently, accrued costs must be transferred from one cost center to another cost center or cost object. In such a case, use the Allocation Type All Costs. However, you can also carry out an allocation independent of the size of the accumulated costs. For example, the target cost centers might generally be charged LCY per year per square meter of utilized building area. The total of the charge would be credited to the Building cost center. When this is done, the credit no longer agrees with the accrued costs of the Building cost center. This then results in a deficit or an excess for the Building cost center. If the credit is higher than the accrued costs, the cost center has gained an operational profit. Instead of using a set amount, you can offset a percentage based on the share. For example, depending on income total of each cost center, 15% for the share is debited to the social welfare expense. As an example for cost objects, you might set the allocation up so that Promotional Goods would be debited 2%, depending on the sales amount of the cost object. Demonstration: Static Allocations Static Allocations are based on a definite value, such as square meters utilized or an established allocation ratio such as 5:2:4. The following steps describe how to define a static allocation. In the example, define a new allocation target for the allocation source PROD. Demonstration Steps 1. Open the cost allocation PROD. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Allocations. c. Select cost allocation PROD, and then click Edit. 2. Create a new allocation target. a. On the Lines FastTab, click Allocations and then click Allocation Target Card. b. Click New. c. Notice the ID and Line No. fields are automatically filled with the appropriate values. d. In the Target Cost Type field, enter e. In the Target Cost Object field, enter PAINT. 5-44

187 Module 5: Cost Accounting f. Set the Allocation Target Type field to establish whether all accrued costs should be allocated or whether an amountdependent or percent-dependent share should be calculated. In this case, select the allocation type All Costs. g. In the Base field, select the Static option. h. In the Share field, fill in a share of 100, Note: You can define the Share or fill both the Static Base and Static Weighting fields (Static Base * Weighting = Share). Although theoretically you can define a base for each allocation target, you must be careful that the Base and the Share of all allocation targets have a ratio to one another that makes sense. i. Notice the program calculates the percentage of the current allocation target in relation to all the existing, defined allocation targets. FIGURE 5.23: COST ALLOCATION TARGET CARD j. Click OK to close the Cost Allocation Target Card page. k. Click OK to close the Cost Allocation page. 5-45

188 Finance Advanced in Microsoft Dynamics NAV 2013 Dynamic Allocations Dynamic allocations depend on other, changeable allocation bases, such as the number of employees in a cost center, or sales profit of a cost object in a certain time period. There are nine predefined dynamic allocation bases that users can more closely define by using five filters. Users can set different filters, depending on the allocation base. The following table shows which filters are possible for different allocation bases and which values are valid in the No. Filter and Group Filter fields. The Date Filter Code is described in more detail in the following section. Base No. Filter Date Filter Code Cost Center Filter Cost Object Filter Group Filter Static G/L Entries G/L Account X X X G/L Budget Entries Cost Type Entries Cost Type Budget Entries G/L Account X X X Budget Name Cost Type X X X Cost Type X X X Budget Name No. of Employees X X Items Sold (Qty) Items Purchased (Qty) Items Sold (Amount) Items Purchased (Amount) Item No. X X X Inventory Posting Group Item No. X X X Inventory Posting Group Item No. X X X Inventory Posting Group Item No. X X X Inventory Posting Group 5-46

189 Module 5: Cost Accounting Theoretically, there could be an unlimited number of bases for the cost allocation. If the basis that you want is not predefined, there are two options: Before the allocation, calculate the costs of the base and record the corresponding values as a static allocation. Ask your Microsoft Dynamics NAV Partner to create additional allocation bases and to customize the calculation formulas. The cost accounting module is developed so that such customizations can be easily made. Date Filter Codes Most dynamic allocation bases depend on a net change in a specific time period. It would not be practical, if this time period were set up with a typical date filter, because the date range would have to be newly defined before each allocation. The Date Filter Code field for the calculation of dynamic allocation bases lets users define a dynamic date range without using a static date. If the allocation bases are updated, the date filter is automatically updated by using the current work date. The current date is the default value for the work date. The following Date Filter Codes are predefined. The second column shows the date filter that would be calculated if the work date were Saturday, November 22, Date Filter Code Date filter on 11/22/2014 <empty> Week No filter 11/17/14 11/23/14 (Monday Sunday) Last Week 11/10/14 11/16/14 Month 11/01/14 11/30/14 Last Month 10/01/14 10/31/14 Month of Last Year 11/01/13 11/30/13 Year 01/01/14 12/31/14 Last Year 01/01/13 12/31/13 Period Last Period Period of Last Year Fiscal Year Last Fiscal Year According to accounting periods According to accounting periods According to accounting periods According to accounting periods According to accounting periods 5-47

190 Finance Advanced in Microsoft Dynamics NAV 2013 Procedure: Define a Dynamic Allocation The following steps provide a general description for how to define a dynamic allocation: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Allocations. 3. Click New. 4. Define the allocation source on General FastTab of the Cost Allocation page. This establishes where the allocation will be credited and the amount of the allocation, if all costs are to be allocated. 5. On the Lines FastTab, define the Target Cost Type, and Target Cost Center or Target Cost Object. This establishes where the allocation will be debited. 6. Select the Allocation Type, indicating whether all accumulated costs should be allocated or whether only a certain amount or a percentage should be calculated. 7. In the Base field, select an allocation base. 8. Fill in the necessary filter fields to more specifically define the allocation base. No. Filter, Cost Center Filter, Cost Object Filter, Date Filter Code, and Group Filter are the available filter fields. Although theoretically you could define a base for each allocation target, you must be careful that the Base and the Share of all allocation targets have a ratio to one another that makes sense. 9. Repeat steps 5 8 for all allocation targets that apply to the allocation source. When you create a new allocation target line, the Target Cost Type, Allocation Type, and Base fields will be automatically filled with the values from the previous line. 10. On the Actions tab, click Calculate Allocation Key so that the program calculates the shares of all the allocation targets that belong to the current allocation goal by using the defined allocation bases. The program calculates the percentage of the current allocation target in relation to all the already defined allocation targets. Demonstration: Dynamic Allocation In the following example, change the dynamic allocation of the costs for the SALES cost center to accommodate the new cost object COMPUTERS. Computer packages have item numbers in the range from 8904-W to 8924-W. The allocation will be posted to the helping cost type 9903 Alloc. of Cost Object. 5-48

191 Module 5: Cost Accounting Note: To successfully complete this example, the demonstration "Create a New Cost Object" must be completed. Demonstration Steps 1. Open the cost allocation SALES. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Allocations. c. Select cost allocation SALES, and then click Edit. 2. Change the allocation target for cost object FURNITURE. a. On the Lines FastTab, select the allocation target FURNITURE. b. Click Allocation, and then click Allocation Target Card. c. Expand the Dyn. Allocation FastTab. d. Change the No. Filter field to 1896S T. 3. Create a new allocation target for cost object COMPUTERS. a. Click New. b. Expand the General FastTab. c. Notice the program automatically fills in the ID, Line No, and Allocation Target Type fields. d. In the Target Cost Object field, enter COMPUTERS. e. Notice that in the Base field, the base is Items Sold (Amount). f. Expand the Dyn. Allocation FastTab. g. In the No. Filter field, enter 8904-W W to enter the item number range for computer package items. Note: If computer packages were already summarized in a specific inventory posting group, you could select the posting group in the Group Filter field. This filter is easier to maintain, especially if new computer packages whose item numbers do not fall within the given number range are added to the product line. h. In the Date Filter Code field, enter Last Year. 5-49

192 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 5.24: COST ALLOCATION TARGET CARD i. Click OK to close the Cost Allocation Target Card page. j. Notice the new allocation target appears in the allocation target lines on the Lines FastTab. k. On the Actions tab, click Calculate Allocation Key. l. The Share of computer packages comes to 1, LCY with exactly 100%, meaning that all the items sold last year fell under the cost object COMPUTERS. 5-50

193 Checking Allocations Module 5: Cost Accounting The correct setup of allocation definitions is important for the allocation entries that result. There are two ways to check that your setup is correct: Start the Calculate Allocation Keys batch job. This batch job recalculates the bases of all dynamic allocations. Notice that any date filters are based on the current work date. Run the Cost Allocations report. To run the Calculate Allocation Keys batch job, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Cost Accounting > Calculate Allocation Keys. 3. Click Yes to run the batch job. 4. Click OK. Note: The Calculate Allocation Keys batch job is also available from the Cost Allocation page and list. To run the Cost Allocations report, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Allocations (under Reports Setup Information). 3. Click Preview. Allocate Costs To allocate the costs by using the allocation definitions setup, use the Allocate Costs batch job. Before you start the allocations, check the following: Are the allocation definitions set up correctly and are the dynamic bases updated? Have the necessary internal calculations been posted? Have the income entries been transferred from the general ledger? 5-51

194 Finance Advanced in Microsoft Dynamics NAV 2013 To start the allocation, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Cost Accounting > Allocate Costs. FIGURE 5.25: COST ALLOCATION BATCH JOB 3. Select the From Alloc. Level and To Alloc. Level fields, if you do not want to allocate all levels in the same batch. It might make sense to allocate first only the cost centers and then to separately allocate the costs from cost centers to cost objects. 4. Define the Allocation Date. Only cost entries up to this allocation date will be allocated. This is especially important if, for example, it is currently the middle of February, but you want to handle only the allocation of the January costs. In this case, you would set the allocation date to 01/31/ If you have set up allocation variants, select a variant in the Group field. 6. Select a budget name in the Budget Name field, if you want to allocate only budget entries. 7. Click OK to start the batch job. 8. Click Yes. 9. Click OK. 5-52

195 Module 5: Cost Accounting Results of the Allocation When you allocate costs, the program does the following: The allocation source is credited with an entry. The text in the cost entry contains the allocation target. The allocation is described in the Allocation Ratio field in the Cost Entry table. Each allocation target is debited with an entry. The posting text of the cost entry mentions the allocation source. The allocation is described in the Allocation Ratio field in the cost entry. In the Registers, the program adds an entry with the source Allocation in the Source field. The entries are summarized per allocation level. The cost entries handled by the batch job, and therefore used as basis amounts for allocations, are marked with True in the Allocated field in the Cost Entry table. The credit entry itself is also marked. Simulating or Deleting the Allocation You can use the Delete Cost Entries batch job to delete cost entries and undo allocations. This might be practical, for example, when you want to simulate an allocation with different allocation ratios. Note: More information is described in the section on Cost Registers Demonstration: Allocating Cost Budgets As mentioned, you can allocate budget entries. On the Cost Allocation page, on the Statistics FastTab, in the Allocation Source Type field, users can specify that the allocation should come from budgets instead of actual costs. With this, users can allocate budget figures and actual costs by different ratios. In the following example, allocate the budget figures for the budget CA2015. Note: First make sure that the demonstration "Copy G/L Budget to Cost Budget Batch Job" is performed. 5-53

196 Finance Advanced in Microsoft Dynamics NAV 2013 Demonstration Steps 1. Allocate budget CA2013. a. On the navigation pane, click Departments. b. Click Financial Management > Periodic Activities > Cost Accounting > Allocate Costs. c. In the Budget Name field, enter CA2015. When you select a budget name in the Allocate Costs batch job, the program allocates the budget figures instead of actual costs. d. Click OK. e. Click Yes. f. Click OK. The cost budget is allocated. The allocation is registered in the cost budget entries, and it can be viewed through the Cost Budget Registers. 5-54

197 Lab 5.3: Set Up a Cost Allocation Module 5: Cost Accounting Scenario In the following example, change the dynamic allocation of the costs for the MATERIAL cost center to accommodate the new cost object COMPUTERS. Computer packages have item numbers in the range from 8904-W to 8924-W. The allocation will be posted to the helping cost type 9903 Alloc. of Cost Object. Note: To successfully complete this lab, the demonstration "Create a New Cost Object" must be completed. Exercise 1: Set Up a Cost Allocation Task 1: Set Up a Cost Allocation High Level Steps 1. Open the cost allocation MATERIAL. 2. Change the allocation target for cost object FURNITURE. 3. Create a new allocation target for cost object COMPUTERS. Detailed Steps 1. Open the cost allocation MATERIAL. a. On the navigation pane, click Departments. b. Click Financial Management > Cost Accounting > Cost Allocations. c. Select cost allocation MATERIAL, and then click Edit. 2. Change the allocation target for cost object FURNITURE. a. On the Lines FastTab, select the allocation target FURNITURE. b. Click Allocation, and then click Allocation Target Card. c. Expand the Dyn. Allocation FastTab. d. Change the No. Filter field to 1896S T. 3. Create a new allocation target for cost object COMPUTERS. a. Click New. b. Expand the General FastTab. c. Notice the program automatically fills in the ID, Line No., and Allocation Target Type fields. d. In the Target Cost Object field, enter COMPUTERS. e. Notice that in the Base field, the base is Items Sold (Amount). f. Expand the Dyn. Allocation FastTab. 5-55

198 Finance Advanced in Microsoft Dynamics NAV 2013 Cost Accounting History Cost Registers g. In the No. Filter field, enter 8904-W W to enter the item number range for computer package items. h. In the Date Filter Code field, enter Last Year. i. Click OK to close the Cost Allocation Target Card page. j. The new allocation target appears in the allocation target lines on the Lines FastTab. k. On the Actions tab, click Calculate Allocation Key. On the Registers page, Microsoft Dynamics NAV 2013 shows when cost and allocation postings occurred. To access the Registers page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Registers (under the History section). FIGURE 5.26: COST REGISTERS WINDOW 5-56

199 Module 5: Cost Accounting In addition to the usual register entries in Microsoft Dynamics NAV 2013, the Registers page contains information and functions particular to cost accounting. Field Description No. Consecutive numbering of the log entries. Source Source of the entries. The options are as follows: Transfer from G/L Cost Journal Cost Allocation Transfer from Budget Level Closed From Cost Entry No. & To Cost Entry No. From Entry No. & To Entry No. The allocation level for allocation postings. This field indicates whether the entry can definitely be closed or not. After closing, it is no longer possible to delete the register entry with its corresponding entries. The program records the first and last cost entry numbers processed in the posting. By clicking the field, you can see the cost entries that correspond to the cost register entry. When users transfer from the general ledger, the program records the first and last G/L entry numbers that were processed. By clicking the field, you can see the general ledger entries that correspond to the cost register entry. Cost Entries vs Allocated Cost Entries. On the Navigate tab, you select to view: Cost Entries shows the entries that were generated in the allocation. Allocated Cost Entries shows the entries that formed the basis for the allocation. 5-57

200 Finance Advanced in Microsoft Dynamics NAV 2013 Cost Budget Registers The Cost Budget Registers contain the same functionality for the budget cost and budget allocations as the Registers has for cost and allocations. To access the Cost Budget Registers page, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Cost Accounting > Cost Budget Registers (under the History section). FIGURE 5.27: COST BUDGET REGISTERS WINDOW The following table describes some fields that are particular to the Cost Budget Registers. No. Source Level Field Description Consecutive numbering of the register entries. The origin of the entry. The options are as follows: Transfer from G/L Budget Cost Journal Allocation Manual The manual option is used for manual changes of amounts on the Cost Budget page. The allocation level for allocation entries. 5-58

201 Module 5: Cost Accounting Closed Field From Cost Budget Entry No. & To Cost Budget Entry No. Description When this field is selected, the entry can be closed. Afterward, it is no longer possible to delete the log entry with its corresponding entries. The numbers of the first and last cost budget entries that were processed for this log entry. Cost Budget Entries Users can also access the cost budget entries from the Cost Budget Register. The cost budget entries contain allocation information similar to that found in the cost entries: allocation number, document number, source code, and so on. To access the cost budget entries from the budget allocation example, follow these steps: 1. Select the last cost budget register entry. This entry has the source Allocation. 2. On the Navigate tab, click Cost Budget Entries. 3. Because all allocation entries have the System-Created Entry check box selected, these entries can be deleted. Deleting Cost Entries and Cost Budget Entries With the Delete Cost Entries and Delete Old Cost Entries batch jobs, you can delete cost entries and undo allocations. The Delete Cost Budget Entries batch job lets you delete cost budget entries and undo allocations. Users may have to do this in the following situations: To simulate (budget) allocations with different allocation ratios. To undo cost transfers from the general ledger to transfer G/L entries that were posted later in the same time period as the original combined posting. To undo cost budget allocations to include late entries in a combined entry as part of the same posting process. To cancel cost (budget) entries in the (Cost Budget) Register. 5-59

202 Finance Advanced in Microsoft Dynamics NAV 2013 To prevent any gaps in the cost (budget) entries and (cost budget) register entries, the program only allows users to delete the most recent log entries and older. This means that users cannot delete a single entry or a batch of entries in the middle of the list of (cost budget) register entries. The batch jobs can be accessed either through the Registers or Cost Budget Registers page. To delete the last log entry and its corresponding cost entries, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > Periodic Activities > Cost Accounting > Delete Cost Entries. FIGURE 5.28: DELETE COST ENTRIES BATCH JOB WINDOW 3. Notice the To Register No. field always contains the last posted register entry number. It cannot be changed. 4. In the From Register No. field, click the drop-down list to select a register entry number from which the deletion should begin. Leave the default value. 5. Click OK to run the batch job. 6. Click Yes. 7. Click Yes. 5-60

203 Cost Accounting Reporting Module 5: Cost Accounting With the following standard reports, you can analyze cost accounting: Report Description Important Filters Cost Acctg. Journal Entries per cost type. Cost Center, Cost Object, Date Cost Acctg. Statement Cost Acctg. Statement per Period Cost Acctg. Analysis Account Schedule Credit and debit balances per cost type. Shown together with the chart of cost types. Profit and loss over two periods with the comparison as a percentage. Balances per cost type with columns for seven fields for cost centers or cost objects that the user can select. User-defined display of the order, titles, and totals from the cost types. Shows credit or debit balances per line. Cost Center, Cost Type, Date Cost Center, Cost Object, Date Cost Type, Date Cost Center, Cost Type, Date To use these reports go to the Reports and Analysis section of Cost Accounting in Financial Management. Note: More information about the Account Schedules in combination with cost accounting is provided in the module "Financial Reporting and Analysis" of this course. 5-61

204 Finance Advanced in Microsoft Dynamics NAV 2013 Cost Acctg. Analysis Possibly the most important report in cost accounting is the Cost Acctg. Analysis report. The display of the lines is built on the chart of cost types. Users can select up to seven cost centers or cost objects that they want visible as columns in the report. FIGURE 5.29: COST ACCTG. ANALYSIS REPORT WINDOW 5-62

205 Cost Type Balance Module 5: Cost Accounting Users can open the statistics page Cost Type Balance from the Chart of Cost Types, the Chart of Cost Centers, and the Chart of Cost Objects pages by clicking Balance on the Home tab in the ribbon. FIGURE 5.30: COST TYPE BALANCE WINDOW With this page, users can filter the values. Cost Center Filter & Cost Object Filter - further filter the values to the cost centers or cost objects that you want to see. View by select the time periods per column. View as select either the net change or the cumulative balance. Some filters are automatically set, depending on the page and location of the cursor from which the Cost Type Balance page is opened. For example, if a user opens the balance page from the Chart of Cost Centers page when the cursor is located on the ADM cost center, the program automatically sets the Cost Center Filter to ADM. When you drill down on any of the amounts, you see the cost entries that contribute to that figure. 5-63

206 Finance Advanced in Microsoft Dynamics NAV 2013 Tips and Tricks The following sections contain some background information that might interest even experienced users of cost accounting. Relationships Between Balances per Cost Type, Cost Center, and Cost Object As already described, all entries in the cost accounting must be allocated to a cost type and also a cost center or a cost object. This means that each cost entry must belong to a cost type and must have a cost center code or a cost object code. This rule ensures that each cost entry appears in an analysis of either the cost centers or the cost objects, but never in both places. When you conduct an analysis, the following relationship applies: Cost Type Balance = Cost Center Balance + Cost Object Balance When users print the income statement, the chart of cost centers, and the chart of cost objects reports, they can reconstruct this relationship. Rounding of Percentage Shares The total of all percentage shares of the allocation target must be 100%. Therefore, the program rounds the share of the last line, when it is necessary. For example, if a user defines three allocation targets with each having a share of 3, the percentage of the last line is % Rounding Allocations The allocations are rounded to 0.01 LCY. For the last allocation target, any possible rounding errors are corrected so that the total of all debits match the total amount of the credit. Revenues in Cost Accounting In many businesses, cost accounting focuses only on analyzing costs. However, cost accounting in Microsoft Dynamics NAV can also work with revenues. This manual concentrates on discussions of costs. Operating income from the general ledger is mostly transferred directly to cost objects. Operating income is called Revenue in cost accounting. 5-64

207 Allocating Set Amounts or Percentages Module 5: Cost Accounting Typically, all costs for a cost center are allocated. Because, during the allocation, the allocated cost entries are marked as Allocated, it is ensured that a cost entry is not accidentally allocated more than one time. If, instead of allocating all costs, users want to allocate an Amount per Share or a Percent per Share, this allocation will be handled every time that they run the Allocate Costs batch job. Users must know for sure that these allocations are only handled when they really want to use them. To do this, users can set a variant identifier in the allocation definition. For example, allocations that use All Costs can be named Variant A. Users can run these allocations in intermittent intervals, because all the costs accumulated in the meantime are allocated. In the Allocate Costs batch job, users can specify that only the allocation definitions for Variant A should be used. Allocations that should be allocated by amount per share or percentage per share can be named Variant B. In the Allocate Costs batch job, users can specify that only the definitions for Variant B should be handled. This allocation can be run regularly, for example, monthly. Starting Date Usually, the expense and income entries from the general ledger are transferred to cost accounting. If the cost accounting should be implemented later than the general ledger, users can set the starting date for the transfer of cost entries. Do this from the Cost Accounting Setup page by selecting the Starting Date for G/L Transfer field. Quantity Budget You can budget in quantities, instead of in monetary amounts. For this, the same functionality as that of the financial budget module is available. Because in the cost accounting module, only actual amounts are captured, the comparison of quantity budgets with actual values is not possible. Later Posting in the General Ledger With the transfer of the general ledger entries to cost accounting, the program handles all general ledger entries posted since the last transfer. The posting date of the general ledger entry is not important. As is generally known, the cost entries form the basis for allocations to main cost centers and cost objects. A G/L entry posted with an earlier posting date could have an influence on an allocation posted beforehand. 5-65

208 Finance Advanced in Microsoft Dynamics NAV 2013 When calculating the amounts to be allocated, the program handles all cost entries posted up to the allocation date, if they have not already been allocated. An entry with an earlier posting date from the G/L would automatically be included in the next allocation. Frequently, this is the optimal approach, because the cost center area is probably already discussed with the manager of the cost center and the allocation should not be belatedly changed. In exceptional cases, you may want the late entry integrated in the already-posted allocation. For this, use the Delete Cost Entries batch job to delete the allocation (and probably all the cost entries after the allocation) and rerun the allocation with the late entry. Process Cost Accounting The cost center calculation is typically structured by using the company organization. This is based on the hierarchical structure and responsibilities within the company. However, you can structure the cost centers according to the process organization. In doing this, users focus on the "cost originators." In the cost accounting process, the cost center accounting is then improved typically, more cost centers are necessary. So that process cost accounting remains meaningful and its benefits can be used, users should define and maintain more allocation bases. Full and Marginal Cost Accounting In marginal cost accounting, costs are distributed in fixed and variable shares. To represent marginal cost accounting in Microsoft Dynamics NAV, the following points are important: Distribute costs when you can in fixed and variable shares when they are captured and post them in separate cost types. Define the allocation definition so that only the variable shares are allocated by using the Cost Type Range field in the allocation source. Possibly in the definition of the allocation target, you might select the options Percent per Share or Amount per Share instead of All Costs in the Allocation Type field. You can only partly allocate costs. 5-66

209 Partially Allocate Costs Module 5: Cost Accounting When allocating costs from pre-cost centers to main cost centers, you may not want part of the accumulated costs allocated. If users are using the Allocation Type Percent per Share or Amount per Share, a part of the costs remain in the allocation source. However, if users are using the Allocation Type All Costs, the balance of the allocation source is distributed. To help with this, define the allocation source also as an allocation target so that the cost center is credited with all costs, but a certain share flows back to the cost center as debit. Deleting Cost Entries When users no longer need entries from previous years in cost accounting, they can use the Delete Old Cost Entries batch job. Automatic Transfer from the General Ledger Users can activate the Autotransfer from G/L field in the Cost Accounting Setup page. When this is activated, every time that the user posts general ledger entries, the program creates corresponding cost entries. Typically, you do this with a batch job. Using the automatic transfer gives users current figures in cost accounting. However, it has some disadvantages: Combined entries are not possible when transferring to cost accounting. There are many entries in the cost register (one per entry). System performance is somewhat reduced when posting. Tips If cost entries are deleted in the register, entries that were transferred earlier with the automatic transfer can be newly transferred by using the transfer batch job. Autotransfer from G/L also works when you post from purchase and sales documents. 5-67

210 Finance Advanced in Microsoft Dynamics NAV 2013 Module Review Module Review and Takeaways Cost Accounting in Microsoft Dynamics NAV 2013 helps you to understand the costs of running a business. It is fully integrated with the general ledger application area, and has the goal to exactly analyze the costs per cost center and cost object. Microsoft Dynamics NAV 2013 provides flexibility when you define allocations to move costs and revenues between cost types, cost centers, and cost objects. Finally, you have a wide range of reporting options, including the account schedules, to analyze your business based on cost types, cost centers, and cost objects. Test Your Knowledge Test your knowledge with the following questions. 1. Name the four types of master data in cost accounting. 2. What is not true about Cost Budgets? ( ) Users can create as many cost budgets as they want. ( ) Users can copy the cost budget to the general ledger budget or copy the general ledger budget to the cost budget. ( ) Users can copy G/L entries to Cost Budgets. ( ) Users can transfer budgeted costs to actual costs. 3. How many allocation levels can you use in Microsoft Dynamics NAV 2013? ( ) 99 ( ) 10 ( ) 100 ( ) Unlimited 5-68

211 Module 5: Cost Accounting 4. The most important part of the allocation definition is the allocation base. Which two different allocation bases are possible in Microsoft Dynamics NAV, and how would you describe them? 5. Which of the following reports can you describe as: Balances per cost type with columns for seven fields for cost centers or cost objects that the user can select. ( ) Account Schedule ( ) Cost Acctg. Analysis ( ) Cost Acctg. Statement ( ) Cost Acctg. Journal 5-69

212 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Solutions Module Review and Takeaways 1. Name the four types of master data in cost accounting. MODEL ANSWER: Cost types and the chart of cost types. Cost centers / cost accounting master data. Cost objects. Allocations. 2. What is not true about Cost Budgets? ( ) Users can create as many cost budgets as they want. ( ) Users can copy the cost budget to the general ledger budget or copy the general ledger budget to the cost budget. ( ) Users can copy G/L entries to Cost Budgets. ( ) Users can transfer budgeted costs to actual costs. 3. How many allocation levels can you use in Microsoft Dynamics NAV 2013? ( ) 99 ( ) 10 ( ) 100 ( ) Unlimited 4. The most important part of the allocation definition is the allocation base. Which two different allocation bases are possible in Microsoft Dynamics NAV, and how would you describe them? MODEL ANSWER: Static allocation bases are based on a definite value, such as square footage or an established allocation ratio, such as 5:2:4. Dynamic allocation bases depend on other, changeable values, such as the number of employees in a cost center or sales revenue of a cost object in a certain time period. 5-70

213 Module 5: Cost Accounting 5. Which of the following reports can you describe as: Balances per cost type with columns for seven fields for cost centers or cost objects that the user can select. ( ) Account Schedule ( ) Cost Acctg. Analysis ( ) Cost Acctg. Statement ( ) Cost Acctg. Journal 5-71

214 Finance Advanced in Microsoft Dynamics NAV

215 MODULE 6: CASH FLOW FORECAST Module Overview In Microsoft Dynamics NAV2013, you use the cash flow forecast to generate predictions of a company s cash flow. A company s cash flow indicates its financial solvency and reveals whether the company can meet its financial obligations in a timely manner. Additionally, the cash flow is a general term for the state of currency assets of a company, such as cash balances, demand funds, checks, or giro funds. However, other company assets also contribute to the cash flow, such as securities and receivables. These assets contribute to the cash flow in different cash ratios. The cash ratio depends on the timing of the conversion of the asset to currency by a sale. To make sure a company is solvent, a future-oriented planning instrument is necessary. Building on the currency assets of the previous period, the program creates a periodic compilation and calculation of the forecasted operational revenues and expenses. Then, the program calculates the cash surplus or the cash deficit. According to these results, the company can make adjustment measures, such as a credit reduction for a surplus, or borrowing if there is a deficit. You can use the cash flow forecast in Microsoft Dynamics NAV2013 to help secure a company s solvency, and to create a comprehensive planning analysis of the company s cash flow. Objectives The objectives are: Explain the functions of the cash flow forecast. Explain the setup of the Chart of Cash Flow Account, Cash Flow Setup and Cash Flow Payment Terms. Explain how to create cash flow forecasts by using Cash Flow Forecast Cards and Cash Flow Manual Revenues and Expenses. Explain how the Cash Flow Worksheet is used. Review the registration of the cash flow through Cash Flow Forecast Entries. Explain the different Cash Flow Forecast Reporting possibilities. 6-1

216 Finance Advanced in Microsoft Dynamics NAV 2013 Functions of the Cash Flow Forecast In Microsoft Dynamics NAV 2013, the cash flow forecast offers several functions that you can use to help secure the solvency of your company. You can capture different cash flow plans and establish one or more cash flow forecasts that you can use to create plans from different viewpoints. These plans can then be organized into accounts that you can set up. Typically, the structure of these accounts corresponds to the high level structure of your general ledger chart of accounts and cash flow plans. When you do the planning, you can incorporate values from the General Ledger (G/L), Sales, Purchasing, Service, and Fixed Assets application areas. The General Ledger area provides information about the liquid funds that are available and the budget values of the company. The Purchasing area provides the values of the current open payables and any forecasted debts from open purchase orders. The Sales area provides information on the current open receivables, and the forecasted receipts from open sales orders. The Service area provides information on open service order lines that flow into the cash flow forecast. If, in Fixed Assets, the projected disposals are recorded and future asset purchases are budgeted, these values can also be incorporated into the cash flow calculation. Additionally, with the cash flow forecast, you can administer manual revenues and expenses and integrate them into the forecast. For the analysis of your forecast, you can use various pages and reports that show the statistics that relate to availability and timeline overviews. Because these are flexible, you can set them up according to your account structure. FIGURE 6.1: CASH FLOW FORECAST PROCESS OVERVIEW 6-2

217 Setting Up Cash Flow Forecasts Module 6: Cash Flow Forecast With the cash flow forecast in Microsoft Dynamics NAV, you can create several forecasts in parallel. For example, for every month, you can newly calculate the cash flow of your business and save the values as history. You use cash flow forecasts to capture the calculations and save them. For each cash flow forecast, you create a cash flow forecast card and complete the corresponding setup. Chart of Cash Flow Accounts The most basic feature of cash flow is the chart of cash flow accounts in which all cash flow forecast entries are registered. In the cash flow forecast, the program arranges the individual values that affect the cash flow of your company by using the cash flow accounts. These accounts can be set up by following the high level structure of your financial chart of accounts. For example, in February of this year, you plan to establish a credit, because larger acquisitions are planned in this time period. In your cash flow forecast, you want to assign this receipt of money to a separate account. Create the account 0090 Credit in the Chart of Cash Flow Accounts. To set up the Chart of Cash Flow Accounts, follow these steps. 1. In the Search box, type Chart of Cash Flow Accounts, and click the related link. 2. Click New to create a new Cash Flow Account Card. FIGURE 6.2: CASH FLOW ACCOUNT CARD WINDOW 6-3

218 Finance Advanced in Microsoft Dynamics NAV In the No. field, enter In the Name field, enter Credit. 5. In the Account Type field, enter Entry. The other options are, similar to a general ledger account: o o o o Heading Total Begin-Total End-Total 6. In the Source Type field, enter Cash Flow Manual Revenue. With this field, you control the source type that is used as the default value when you enter lines in the Cash Flow Worksheet. The options are as follows: o Receivables o Payables o Liquid Funds o Cash Flow Manual Expense o Cash Flow Manual Revenue o Sales Orders o Purchase Orders o Fixed Assets Budget o Fixed Assets Disposal o Service Orders o G/L Budget 7. The G/L Integration is only relevant when a cash flow account is integrated with the general ledger. The G/L Integration field has the following options: o Balance The current balance of the general ledger accounts that are used in the cash flow forecast calculation. Typically used for liquid funds. o o Budget The budgeted entries of the general ledger that are used in the cash flow forecast calculation. Typically used to include relevant Profit and Loss (P/L) budget values. Both Both options. 8. The G/L Account Filter field should be specified if the G/L Integration is set. Enter the general ledger accounts from where the balance and, or the budget entries should be derived. 9. Click OK to close the Cash Flow Account Card page. 6-4

219 Module 6: Cash Flow Forecast 10. To update the structure of the chart of accounts, click Indent Chart of Accounts on the Home tab. Note: The indent function moves all End-Totals to the corresponding Begin- Totals and indents the accounts that lie in between. For accounts of the type End- Totals, the total for the accounts that must be summed up are filled in the Totaling column. If there is already an entry here, it is overwritten. Cash Flow Setup The program uses a function to automatically calculate the current cash flow of the company. To make sure that the relevant information in the cash flow forecast appears in the correct accounts, you must use the Cash Flow Setup page. You use this page to establish which accounts must be used for the entries in the sales, purchases, service, and fixed assets areas. To access the Cash Flow Setup page, follow these steps. 1. On the navigation pane, click Departments. 2. Click Financial Management, then click Cash Flow, and then click Cash Flow Setup. FIGURE 6.3: CASH FLOW SETUP WINDOW 3. Expand the General FastTab. The following fields are available: o Receivables CF Account No. Enter the number of the cash flow account in which the values for open receivables will be registered. The program uses open customer ledger entries to calculate open receivables. 6-5

220 Finance Advanced in Microsoft Dynamics NAV 2013 o o o o o o Payables CF Account No. Open payables are registered in this cash flow account. The program uses open vendor ledger entries to calculate the open payables. Sales Order CF Account No. All open sales orders are registered in this cash flow account. The program uses all sales orders that are not yet fully invoiced to calculate the order volume. Service CF Account No. All open service order item lines are registered in the cash flow account. For this calculation, the program uses all service orders that are not yet invoiced. Purch. Order CF Account No. Enter the number of the cash flow account in which open purchase orders will be registered. The purchase order volume originates from all purchase orders that are not yet fully invoiced. FA Budget CF Account No. Enter the number of the cash flow account in which the acquisition costs of the budgeted fixed assets will be registered. FA Sales CF Account No. Enter the number of the cash flow account in which the proceeds from the planned fixed assets sales are registered. 4. Expand the Numbering FastTab. o Cash Flow Forecast No. Series Select the number series that the program uses to number cash flow forecasts. 5. Click OK to close the Cash Flow Setup page. Cash Flow Payment Terms In addition to the standard payment terms of customers and vendors, you can specify your own methods of payment for the cash flow forecast, in the Cash Flow Payment Terms Code field. This field is available on the customer and vendor card. To open the Customer Card page, follow these steps. 1. On the navigation pane, click Departments. 2. Click Financial Management, click Receivables, and then click Customers. 3. Select a customer and then click Edit. 4. Expand the Payments FastTab. 5. Fill in the Cash Flow Payment Terms Code field, by selecting an option from the Payment Terms table. 6. Click OK to close the Customer Card page. 6-6

221 Creating Cash Flow Forecasts Module 6: Cash Flow Forecast Demonstration: Setting Up a Cash Flow Forecast Card Scenario: You want to calculate the cash flow of your company on February 25, 2014.Therefore, set up a new cash flow card. Include neutral payments and the financial budget from February 1, 2014 to December 31, 2014 in the plan. Do not consider the discounts or the cash flow payment conditions. Demonstration Steps 1. Set the work date to 02/25/14. a. On the Microsoft Dynamics NAV tab in the ribbon, click Set Work Date. b. In the Work Date field, enter 02/25/14. c. Click OK to close the Set Work Date page. 2. Create a new cash flow forecast card. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Cash Flow Forecasts. c. Click New to create a new Cash Flow Forecast Card. FIGURE 6.4: CASH FLOW FORECAST CARD WINDOW 6-7

222 Finance Advanced in Microsoft Dynamics NAV 2013 The following fields are available. Consider Discount Select the check box to have the cash discounts assigned in entries and documents that will be reflected in the liquidity calculation. Consider Pmt. Disc. Tol. Date Select the check box to have the program factor in the payment discount tolerance date when you calculate the cash flow date. You can only select this option if you decide to take the discount into consideration. Consider Pmt. Tol. Amount Select the check box to use the payment tolerance amounts from the posted customer and vendor ledger entries. Consider CF Payment Terms In addition to the standard payment terms of customers and vendors, you can specify your own methods of payment for the cash flow forecast. If you want to use these in the cash flow calculation, select this field. Show in Chart on Role Center Select the check box to have this Cash Flow Forecast promoted on the Role Center Cash Flow Chart. G/L Budget From & G/L Budget To Enter the starting and ending date from which you want to use the budget values from the general ledger in the cash flow forecast. Manual Payments From & Manual Payments To Enter a starting and ending date from which neutral expenses will be included in the cash flow forecast. Note: For more information about Cash Flow Forecast Dates and Amounts, and Cash Flow Payment Terms, refer to the online Help for Microsoft Dynamics NAV. d. In the Description field, enter Cash Flow Forecast February e. In the G/L Budget From field, enter 02/01/14. f. In the G/L Budget To field, enter 12/31/14. g. In the Manual Payments From field, enter 02/01/14. h. In the Manual Payments To field, enter 12/31/ Add an additional comment to the cash flow forecast card. You can enter additional information to a cash flow forecast for the contents of the fields in the cash flow forecast card. You add these comments as text lines on the Cash Flow Comments page. 6-8

223 Module 6: Cash Flow Forecast a. On the Home tab in the ribbon, click Comments. b. The Date field is automatically filled with the work date. You can either change the date or leave the field blank. c. Enter 2 nd Cash Flow Forecast Calculation 2014, As of: February in the comment field. Use as many lines as necessary. FIGURE 6.5: CASH FLOW COMMENT PAGE d. Click OK to close the Cash Flow Comment page. Demonstration: Cash Flow Manual Revenues and Expenses In addition to the information on cash flow that you can calculate directly from the general ledger, purchase, sales, fixed assets, and service application areas, you can also establish additional influencing factors that include manual revenues and expenses. For example, revenues can originate from rental income, interest from financial assets or new private capital. Expenses can originate from salaries, interest on credit, or planned investments. You can plan these manual revenues and expenses for a set time period and use them in the calculation of liquidity. Scenario: In February 2014, you are planning on a larger investment. Therefore, you must create a credit of 50,000 Local Currency (LCY). To consider this amount in your cash flow calculation, you must create a new manual revenue. 6-9

224 Finance Advanced in Microsoft Dynamics NAV 2013 Demonstration Steps 1. Create a Cash Flow Manual Revenue. a. On the navigation pane, click Departments. b. Click Financial Management, then click Cash Flow, and then click Cash Flow Manual Revenues. c. Click New to create a new line. FIGURE 6.6: CASH FLOW MANUAL REVENUE WINDOW d. In the Code field, enter MR04. e. In the Cash Flow Account No. field, enter 0090 Credit. f. In the Starting Date field, enter 02/01/14. g. In the Ending Date field, enter 02/28/14. h. Because this is a one-time income, leave the Recurring Frequency field blank. i. In the Amount field, enter 50, LCY. 2. Assign default dimensions to the new cash flow manual revenue. a. On the Home tab, click Dimensions. b. In the Dimension Code field, enter DEPARTMENT. c. In the Dimension Value Code field, enter PROD. d. Click OK to close the Default Dimensions page. e. Click OK to close the Cash Flow Manual Revenues page. 6-10

225 Demonstration: Cash Flow Worksheet Module 6: Cash Flow Forecast In the Cash Flow Worksheet, you can call the Suggest Worksheet Lines function to calculate the cash flow. With this function, you can fill the worksheet automatically, and then check the entries and register them. You can also make manual cash flow entries in the Cash Flow Worksheet. In the Cash Flow Worksheet, you can only register the debits or credits of a cash flow in single lines to the cash flow account. By using the Suggest Worksheet Lines batch job, you can automatically transfer information from the general ledger, purchasing, sales, service, and fixed assets application areas to the Cash Flow Worksheet. Scenario: On February 15, 2014, you want to review and register the cash flow CF in the Cash Flow Worksheet. Demonstration Steps 1. To calculate the cash flow in the Cash Flow Worksheet, follow these steps. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Cash Flow Worksheet. c. On the Actions tab, click Suggest Worksheet Lines. d. In the Cash Flow Forecast field, enter CF e. Select all the options to be included in this cash flow calculation. 6-11

226 Finance Advanced in Microsoft Dynamics NAV 2013 f. In the G/L Budget Name field, enter This is the budget from which the values are taken. FIGURE 6.7: CASH FLOW FORECAST SUGGEST WORKSHEET LINES BATCH JOB WINDOW g. Click OK to run the batch job. h. On the Actions tab in the ribbon, you can click the Show option. Then, this browses directly to the source. i. On the Actions tab, click Register. j. Click OK to close the Cash Flow Worksheet page. Note: If the Suggest Worksheet Lines batch job is run again for the same cash flow, all existing entries for this cash flow are deleted. The entries can only be generated with a new registration of the suggested entries in the Cash Flow Worksheet. 6-12

227 Module 6: Cash Flow Forecast Cash Flow Dates The due date of the cash flow forecast entries shows the original due date of the entries. The cash flow date is the date with which a corresponding cash receipt or payment can be calculated, independent of the actual due date. The program calculates the due date and the cash flow date of the entries as follows: Transferred From Cash Flow Date Cash Flow Manual Revenues Customer/Vendor Ledger Entries Work Date Due date of the entry. If the discount is considered: Discount date of the entry. If the cash flow payment terms are considered: The due date calculated from the entry s posting date. If both the discount and the cash flow payment terms are considered: The discount date calculated from the posting date. Sales/Purchase Orders Due date from the document header. If the discount is considered: Discount date from the document header. If the cash flow payment terms are considered: The due date calculated from the document date in the document header. If both discount and cash flow payment terms are considered: The discount date calculated from the document date of the document header. Service Orders Due date from the document header. If the discount is considered: Discount date from the document header. If cash flow payment terms are considered: The due date calculated from the document date in the document header. If discount and cash flow payment terms are considered: The discount date calculated from the document date in the document header. Investment in Fixed Assets Posting date of the purchase entries. 6-13

228 Finance Advanced in Microsoft Dynamics NAV 2013 Transferred From Sales of Fixed Assets Cash Flow Manual Expenses Financial Budget Cash Flow Date Expected fixed asset disposal date. First fulfillment date or the recurrence of it. Date of the budget entry. Cash Flow Forecast Entries After you register the Cash Flow Worksheet, you can review all the cash flow forecast entries that are created, by following these steps. 1. On the navigation pane, click Departments. 2. Click Financial Management, then click Cash Flow, and then click Cash Flow Forecasts. 3. Select the cash flow forecast CF and on the Home tab click Entries. 4. Select the cash flow forecast entry with the cash flow date 02/06/14 and the document number On the Home tab, click Show. The source document or the entry appears. FIGURE 6.8: CASH FLOW FORECAST ENTRIES 6. Click OK to close the Customer Ledger Entries page. 7. Click Close to close the Cash Flow Forecast Entries page. 6-14

229 Lab 6.1: Creating a Cash Flow Forecast Scenario Module 6: Cash Flow Forecast On March 25, 2014, you want to calculate the liquidity of your company for March. Include the manual payments and the financial budget from March 1, 2014 to December 31, 2014 in the planning. You must also include the discount and the payment tolerance amount. In the comments, state that this planning reflects the third cash flow calculation for the year Exercise 1: Creating a Cash Flow Forecast Task 1: Creating a Cash Flow Forecast High Level Steps 1. Set the work date to 03/25/ Create a new cash flow forecast card. 3. Add an additional comment to the cash flow forecast card. Detailed Steps 1. Set the work date to 03/25/2014. a. On the Microsoft Dynamics NAV tab in the ribbon, click Set Work Date. b. In the Work Date field, enter 03/25/14. c. Click OK to close the Set Work Date page. 2. Create a new cash flow forecast card. a. On the navigation pane, click Departments. b. Click Financial Management, then click Cash Flow, and then click Cash Flow Forecasts. c. Click New to create a new Cash Flow Forecast Card. d. In the Description field, enter Cash Flow Forecast March e. Select the Consider Discount, Consider Pmt. Disc. Tol. Date, and Consider Pmt. Tol. Amount check boxes. f. In the G/L Budget From field, enter 03/01/14. g. In the G/L Budget To field, enter 12/31/14. h. In the Manual Payments From field, enter 03/01/14. i. In the Manual Payments To field, enter 12/31/

230 Finance Advanced in Microsoft Dynamics NAV Add an additional comment to the cash flow forecast card. a. On the Home tab in the ribbon, click Comments. b. The Date field is automatically filled with the work date. In the Comment field, enter 3 rd Cash Flow Forecast Calculation 2014, As of: March. c. Click OK to close the Cash Flow Comment page. 6-16

231 Module 6: Cash Flow Forecast Lab 6.2: Entering Manual Revenues and Expenses Scenario Because of increased sales volume numbers, you decide to pay a 5, LCY bonus to your employees on March 25, The bonus payment should be recorded in a new cash flow account 1035 Bonus Payment Premiums. Exercise 1: Entering Manual Revenues and Expenses Task 1: Entering Manual Revenues and Expenses High Level Steps 1. Create the new cash flow account. 2. Enter the manual expense. Detailed Steps 1. Create the new cash flow account. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Chart of Cash Flow Accounts. c. Click New to create a new Cash Flow Account Card. d. In the No. field, enter e. In the Name field, enter Bonus Payment Premiums. f. In the Account Type field, enter Entry. g. In the Source Type field, enter Cash Flow Manual Expense. h. Click OK to close the Cash Flow Account Card page. i. To update the structure of the chart of accounts, click Indent Chart of Accounts on the Home tab in the ribbon. 2. Enter the manual expense. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Cash Flow Manual Expenses. c. Click New to create a new line. d. In the Code field, enter ME04. e. In the Cash Flow Account No. field, enter 1035 Bonus Payment Premiums. f. In the Starting Date field, enter 03/01/14. g. In the Ending Date field, enter 03/31/14. h. Leave the Recurring Frequency field blank. i. In the Amount field, enter 5, LCY. j. Click OK to close the Cash Flow Manual Expenses. 6-17

232 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 6.3: Using the Cash Flow Worksheet Scenario On March 25, 2014, you want to calculate and register the cash flow forecast for your company, for cash flow number CF by using the cash flow worksheet. All application areas (such as the general ledger, sales, purchasing, service, and fixed assets) must be included in the calculation. Note: To successfully complete this lab, you must first complete lab 6.1: Creating a Cash Flow Forecast. Exercise 1: Using the Cash Flow Worksheet Task 1: Using the Cash Flow Worksheet High Level Steps 1. Set the work date to 03/25/ Calculate the cash flow in the Cash Flow Worksheet by using the Suggest Worksheet Lines batch job. Detailed Steps 1. Set the work date to 03/25/14. a. On the Microsoft Dynamics NAV tab in the ribbon, click Set Work Date. b. In the Work Date field, enter 03/25/14. c. Click OK to close the Set Work Date page. 2. Calculate the cash flow in the Cash Flow Worksheet by using the Suggest Worksheet Lines batch job. a. On the navigation pane, click Departments. b. Click Financial Management, then click Cash Flow, and then click Cash Flow Worksheet. c. On the Home tab of the ribbon, click Suggest Worksheet Lines. d. In the Cash Flow Forecast field, enter CF e. Select all the options to be included in this cash flow calculation. f. In the G/L Budget Name field, enter This is the budget year from which the values are taken. g. Click OK to run the batch job. h. On the Actions tab, click Register. i. Click OK to close the Cash Flow Worksheet page. 6-18

233 To review the cash flow forecast entries, follow these steps. a. On the navigation pane, click Departments. Module 6: Cash Flow Forecast b. Click Financial Management, click Cash Flow, and then click Cash Flow Forecasts. c. Select cash flow number CF d. On the Home tab of the ribbon, click Entries. Running the batch job in this scenario creates many cash flow forecast entries. The cash flow date of these entries is calculated by using the rules that are explained in the Cash Flow Dates topic. For example, the cash flow forecast entry for sales order has a cash flow date of 09/21/14. Because sales order is set up with a two percent payment discount, the cash flow date is based on the payment discount date of sales order To analyze the cash flow date of sales order , follow these steps. a. On the Cash Flow Forecast Entries window, locate and select the cash flow forecast entry for sales order b. On the Home tab of the ribbon, click Show. c. Expand the Invoicing FastTab of sales order Notice that the payment discount date is 09/21/2014, and that this date is used as the cash flow date for the related cash flow forecast entry. FIGURE 6.9: SALES ORDER INVOICING FASTTAB WINDOW 6-19

234 Finance Advanced in Microsoft Dynamics NAV 2013 Cash Flow Forecast Reporting Cash Flow Forecast Statistic FactBox For each cash flow, you have a statistics FactBox that includes the relevant information for the cash flow forecast that is available. To access the Cash Flow Forecast Statistic FactBox, follow these steps. 1. On the navigation pane, click Departments. 2. Click Financial Management, click Cash Flow, and then click Cash Flow Forecasts. 3. Select cash flow forecast CF The Cash Flow Forecast Statistic FactBox is available on the right-side of the page. FIGURE 6.10: CASH FLOW FORECAST STATISTIC FACTBOX WINDOW Note: The same information can be found on the Cash Flow Forecast Statistics page. This page can be accessed by clicking Statistics on the Navigate tab. 6-20

235 Cash Flow Forecast Chart Module 6: Cash Flow Forecast You can select one of the cash flow forecasts to view as a chart on the role center, by selecting the Show in Chart on Role Center check box on the Cash Flow Forecast Card. The Cash Flow Forecast Chart is available for some selected profiles such as the Accounting Manager, President and President Small Business. Make sure that you switch to one of these profiles. To access the Cash Flow Forecast Chart, on the navigation pane, click Home, and then click Role Center. FIGURE 6.11: CASH FLOW CHART ON ROLE CENTER Different actions are available on the chart to determine the exact information that is presented. These include the following: o o o o Show Accumulated Cash, Change in Cash, or Combined Start Date First entry date or Work Date Period Length Group by Positive/Negative, Account No., or Source Type Cash Flow Availability by Period You can view the availability of each cash flow by period in an overview. The overview shows the individual periods in the rows, and the columns represent the categories in the cash flow. The periods can be days, weeks, months, quarters, or years. Additionally, you can select whether the amounts should be displayed as net changes or as balances at the period end dates. To show the Cash Flow Availability by Period page, follow these steps. 1. On the navigation pane, click Departments. 2. Click Financial Management, click Cash Flow, and then click Cash Flow Forecasts. 3. Select cash flow forecast CF

236 Finance Advanced in Microsoft Dynamics NAV On the Home tab, click CF Availability by Periods. 5. In the View by field, enter Month. FIGURE 6.12: CASH FLOW AVAILABILITY BY PERIOD WINDOW 6. Click OK to close the CF Availability by Periods page. Demonstration: Cash Flow Date List You can print a date list for each cash flow. In this date list, the registered cash flow forecast entries are organized by category (such as Receivables or Sales Orders) and shown over several periods. You can select the number of periods and their length when you print the date list. Scenario: For the cash flow CF100002, print the cash flow date list report. Set February 1, 2014 as the start date. The report should show 12 months. Demonstration Steps 1. Print the Cash Flow Date List. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Cash Flow Date List. 6-22

237 Module 6: Cash Flow Forecast FIGURE 6.13: CASH FLOW DATE LIST WINDOW c. Expand the Options FastTab. d. In the From Date field, enter 02/01/14. e. In the Number of Intervals field, enter 12. f. In the Interval Length field, enter 1M. g. Expand the Cash Flow Forecast FastTab. h. In the No. filter field, enter CF i. Click Preview. 6-23

238 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 6.14: CASH FLOW DATE LIST REPORT WINDOW 6-24

239 Lab 6.4: Printing the Cash Flow Date List Scenario Module 6: Cash Flow Forecast Print the cash flow date list for the cash flow CF As a start date, select 03/01/14. The report should show 12 months. Note: To successfully complete this lab, you must first complete lab 6.1: Creating a Cash Flow Forecast. Exercise 1: Printing the Cash Flow Date List Task 1: Printing the Cash Flow Date List High Level Steps 1. Print the Cash Flow Date List. Detailed Steps 1. Print the Cash Flow Date List. a. On the navigation pane, click Departments. b. Click Financial Management, click Cash Flow, and then click Cash Flow Date List. c. Expand the Options FastTab. d. In the From Date field, enter 03/01/14. e. In the Number of Intervals field, enter 12. f. In the Interval Length field, enter 1M. g. Expand the Cash Flow Forecast FastTab. h. In the No. filter field, enter CF i. Click Preview. 6-25

240 Finance Advanced in Microsoft Dynamics NAV 2013 Module Review Module Review The cash flow forecast functionality that is included in Microsoft Dynamics NAV2013 can be used to generate a prediction and help plan a company s cash flow. The forecast is based on information that originates from other application areas in the database, such as the general ledger, sales, purchasing, service, and fixed assets. Additionally, manually entered revenues and expenses are also included in the forecast. You can analyze cash flow figures with cash flow forecast statistics and in cash flow forecast charts. If you want to create a more advanced analysis of a company s cash flow, you can set up account schedules with cash flow accounts. The Financial Reporting and Analysis module of this course explains how to create account schedules with cash flow accounts. Test Your Knowledge Test your knowledge with the following questions. 1. From which different application areas in Microsoft Dynamics NAV 2013 can you incorporate values in cash flow forecasting? 2. The G/L Integration field on the cash flow account specifies whether a cash flow account has integration with the general ledger. Which of the following statements is true? ( ) When a cash flow account has integration with the general ledger, the balances of the general ledger accounts are used in the cash flow forecast. ( ) When a cash flow account has integration with the general ledger, either the balances of the general ledger accounts or their budgeted values are used in the cash flow forecast. ( ) When a cash flow account has integration with the general ledger, the budgeted values of the general ledger accounts are used in the cash flow forecast. 6-26

241 Module 6: Cash Flow Forecast 3. What do you need to create if you want to take into account the future revenues from rental income in your cash flow forecast? ( ) A Projected Cash Flow Revenue ( ) A Projected Manual Income ( ) A Cash Flow Manual Income. ( ) A Cash Flow Manual Revenue. 4. Where is the Cash Flow Forecast Chart displayed? ( ) On the Cash Flow Forecast Statistics page. ( ) On the Cash Flow Forecast Card page. ( ) On the Account Schedule page. ( ) On the role center. 6-27

242 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Solutions Module Review and Takeaways 1. From which different application areas in Microsoft Dynamics NAV 2013 can you incorporate values in cash flow forecasting? MODEL ANSWER: General Ledger (G/L), Sales, Purchasing, Service, and Fixed Assets. 2. The G/L Integration field on the cash flow account specifies whether a cash flow account has integration with the general ledger. Which of the following statements is true? ( ) When a cash flow account has integration with the general ledger, the balances of the general ledger accounts are used in the cash flow forecast. ( ) When a cash flow account has integration with the general ledger, either the balances of the general ledger accounts or their budgeted values are used in the cash flow forecast. ( ) When a cash flow account has integration with the general ledger, the budgeted values of the general ledger accounts are used in the cash flow forecast. 3. What do you need to create if you want to take into account the future revenues from rental income in your cash flow forecast? ( ) A Projected Cash Flow Revenue ( ) A Projected Manual Income ( ) A Cash Flow Manual Income. ( ) A Cash Flow Manual Revenue. 4. Where is the Cash Flow Forecast Chart displayed? ( ) On the Cash Flow Forecast Statistics page. ( ) On the Cash Flow Forecast Card page. ( ) On the Account Schedule page. ( ) On the role center. 6-28

243 MODULE 7: FINANCIAL REPORTING AND ANALYSIS Module Overview Businesses running ERP systems capture lots of data through daily activity. This data, which reflects such things as the organization's sales figures, purchases, operational expenses, employee salaries, and budgets, can become valuable for decision makers when they know how to use it. The aim of this module is to demonstrate several ways that the information workers those responsible for making strategic decisions can easily generate business intelligence out of their organization's Microsoft Dynamics NAV database. Based on the chart of accounts, you set up account schedules and use them to report on financial data. This module also shows how to use account schedules in combination with data from cost accounting and cash flow forecasting. To give you more insight into your business, you can analyze data by the different dimensions that you use. Microsoft Dynamics NAV enables you to organize and analyze your data by dimensions. This module describes the different types of dimensions, and how to create reports that are based on dimensions. Objectives The objectives are: Describe filtering and analysis pages related to the chart of accounts. Explain how to set up an account schedule and explain other processes that relate to account schedules. Demonstrate cost account schedules. Demonstrate cash flow account schedules. Describe types of dimensions. Explain how to set up analysis views. Explain the process of exporting analysis views to Microsoft Office Excel 2007, and describe the elements of the exported file. Show how to generate analysis by dimensions and other dimension analysis reports. Show how to set up a Finance Performance chart. 7-1

244 Finance Advanced in Microsoft Dynamics NAV 2013 Analyze the Chart of Accounts The chart of accounts is the place to start financial analysis and reporting. The standard analyses in the chart of accounts are easy to access and they provide information without any setup requirements. You can access the following analysis pages from the Chart of Accounts page: G/L Account Balance G/L Balance G/L Balance by Dimension G/L Account Balance/Budget G/L Balance/Budget Apply Filters in the Chart of Accounts In the Chart of Accounts page, you can filter accounts and amounts by using single field filters, advanced filters, and limit totals. Single field and advanced filters on any field in the G/L Account table can be used to filter the G/L accounts. FIGURE 7.1: CHART OF ACCOUNTS PAGE WITH ADVANCED FILTERING AND LIMIT TOTALS TO FILTERING DISPLAYED IN THE FILTER PANE 7-2

245 Module 7: Financial Reporting and Analysis The amounts for each account are determined by summing the G/L entries for the account. The following table shows the calculated amount fields in the Chart of Accounts page. Field Net Change Balance Balance at Date Description The sum of the G/L entries for a date range determined by the Date Filter limit totals to filter. The current balance of the account. This is the sum of all G/L entries for the account. The Date Filter is ignored. The balance of the account at the date entered in the Date Filter limit totals to filter. If a date range is entered in the Date Filter, only the ending date is used. When users apply limit totals to filter, the ledger entries that are summed for the G/L accounts can be determined. The limit totals to filters available for the chart of accounts are shown in the following table. Limit Totals To Filter Budget Filter Business Unit Filter Date Filter Global Dimension 1 and Global Dimension 2 Filters Description Filters the amounts displayed for each account based on the Budget field of the G/L Budget Entries for the account. Filters the amounts displayed for each account based on the Business Unit Code field on the G/L entries and G/L Budget entries for the account. Business units specify the companies that are part of a consolidation group. Filters the amounts displayed for each account based on the Posting Date field on the G/L entries and G/L Budget entries for the account. Filters the amounts displayed for each account based on the Global Dimension 1 Code field and Global Dimension 2 Code field on the G/L Entries and G/L Budget Entries for the account. In the demonstration company, these filters are the Department Filter and Project Filter. 7-3

246 Finance Advanced in Microsoft Dynamics NAV 2013 Balance Analysis in the Chart of Accounts To simplify applying limit totals to filters to the chart of accounts, the following standard analysis pages are available: G/L Account Balance G/L Balance G/L Balance by Dimension G/L Account Balance/Budget G/L Balance/Budget You can access these analysis pages from the Navigate tab of the ribbon. Procedure: Review G/L Account Balances The G/L Account Balance page contains the total G/L entries for a single account over several time periods. The account displayed is the one that the cursor was on in the chart of accounts when the page was opened. For each period, you can view the net change, debit amount, and credit amount of the G/L entries posted to the account. Additionally, you can filter amounts by budget, business unit, date, and dimensions with the limit totals to filters. To review the G/L Account Balance page for account 6110, follow these steps: 1. In the Search box, type "Chart of Accounts", and then click the related link. 2. Locate G/L account On the Navigate tab of the ribbon, click G/L Account Balance. 7-4

247 Module 7: Financial Reporting and Analysis 4. In the View by field, enter Month to view the entries by month. FIGURE 7.2: G/L ACCOUNT BALANCE WINDOW On the G/L Account Balance page, the Options FastTab contains the fields shown in the following table. Field Closing Entries Debit & Credit Totals Description Determines whether to include or exclude closing entries in the amounts. When this check box is selected, Microsoft Dynamics NAV separately displays the debit and credit amounts posted in the same period. If the check box is clear, the net of all entries posted in that period are displayed as Debit Amount or Credit Amount. 7-5

248 Finance Advanced in Microsoft Dynamics NAV 2013 Field Description View by Determines the time period displayed for each line. The options are Day, Week, Month, Quarter, Year, and Accounting Period. The date in the Start Date field on each line is always the starting date for each period. View as Determines what type of amount is shown in the columns: Net Change or Balance at Date. Select Net Change to display the net change in the account balance for the period. Select Balance at Date to display the G/L account balance as of the last day in the period. Together, time periods and amount types determine the following: If the View by field is greater than one day, and net change amounts are displayed, the date on a line represents the starting date of the time period. If the period is greater than one day, and balance amounts are displayed, the balance is based on the ending date of the time period. For example, if the View as option is set to Balance at Date and the View by option is set to Month, for the line with a Period Start of 01/01/14, the balance displayed is the balance on January 31, Using the limit totals to filters, amounts can also be filtered by the following: Budget Business Unit Date Global Dimension 1 and 2 Filters (known as Department and Project Filters in the CRONUS International Ltd. demonstration company) Procedure: Review G/L Balances The G/L Balance page displays the total of G/L entries for all accounts for a specified time period. To review the G/L Balance page, follow these steps: 1. On the General Ledger page, click Chart of Accounts. 2. On the Navigate tab of the ribbon, click G/L Balance. 7-6

249 Module 7: Financial Reporting and Analysis 3. In the View by field, enter Month to view the entries by month. FIGURE 7.3: G/L BALANCE WINDOW The G/L Balance page contains the same amounts and filters as the G/L Account Balance page. You can quickly display the amounts from prior and future periods with the Previous Period and Next Period buttons on the ribbon. In addition to the time period functions, users can set more complex date filters in the filter pane by using the limit totals to feature. With this feature, users can combine selected entries from different periods. Procedure: Review G/L Balances by Dimension The G/L Balance by Dimension page provides dimensional analysis of actual or budgeted entries in a user-defined format. This page has the same format as the Analysis by Dimensions page, but is built on G/L Entries and G/L Budget Entries instead of Analysis View entries and Analysis View budget entries. Therefore, only global dimension information can be viewed in this page. 7-7

250 Finance Advanced in Microsoft Dynamics NAV 2013 To review the G/L Balance by Dimension page, follow these steps: 1. On the General Ledger page, click Chart of Accounts. 2. In the Navigate tab of the ribbon, click G/L Balance by Dimension. 3. Expand the Matrix Options FastTab. 4. In the View by field, enter Month to view the entries by month. 5. On the ribbon, click Show Matrix. FIGURE 7.4: G/L BALANCE BY DIM. MATRIX Analysis by dimension is described in the "Financial Analysis" lesson in this module. Procedure: Review G/L Account Balances and Budgets The G/L Account Balance/Budget page compares actual and budgeted entry totals for a single account over several time periods. To review the G/L Account Balance/Budget page, follow these steps: 1. On the General Ledger page, click Chart of Accounts. 2. Locate G/L account On the Navigate tab of the ribbon, click G/L Account Balance/Budget. 7-8

251 Module 7: Financial Reporting and Analysis 4. In the View by field, enter Month to view the entries by month. FIGURE 7.5: G/L ACCOUNT BALANCE/BUDGET The G/L Account Balance/Budget page contains the same amounts as the G/L Account Balance page. However, in addition to actual amounts, the page also contains the budgeted debit amount, budgeted credit amount, and the net budgeted amount for the same periods. The comparison of the posted entries to the budget entries is calculated as an Index percentage in the Balance/Budget (%) field. The filters are the same as the G/L Account Balance page except for two differences: There are no Debit & Credit Totals, because for a budget entry you can only enter an amount (negative or positive) and no debit or credit amount. There is an automatic Budget Filter limit totals to filter setting for filtering the budget information that is included in the page. Procedure: Review G/L Balances and Budgets The G/L Balance/Budget page compares actual and budgeted entries for all accounts for a specified time period. To review the G/L Balance/Budget page, follow these steps: 1. On the General Ledger page, click Chart of Accounts. 7-9

252 Finance Advanced in Microsoft Dynamics NAV On the Navigate tab of the ribbon, click G/L Balance/Budget. 3. In the View by field, enter Month to view the entries by month. FIGURE 7.6: G/L BALANCE BUDGET WINDOW Account Schedules The amounts and the filters included in the analysis are the same as those on the G/L Account Balance/Budget page. Additionally, the Date Filter limit totals to filter, Previous Period, and Next Period buttons are available. You can use account schedules to create financial reports in a flexible way and without any development needed. You use account schedules to arrange accounts that are listed in the chart of accounts in ways that provide information about those accounts. Users can set up various layouts to define the information that they want to extract from the chart of accounts. One of the main purposes of account schedules is to provide a place for calculations that cannot be made directly in the chart of accounts. For example, users can create account schedules to calculate profit margins on dimensions such as departments or customer groups. Additionally, they can filter any G/L entries and G/L budget entries, for example, by net change or debit amount. By using cost types and cash flow entry accounts in the account schedules, users can build cost accounting reports and cash flow reports. 7-10

253 Module 7: Financial Reporting and Analysis With account schedules, users can do the following:: Create customized financial reports without using the Report Designer. Create as many account schedules as needed, each with a unique name. Set up various report layouts and print the reports with the current figures. Export financial data to Microsoft Excel. Account Schedules Names An account schedule consists of the following components: An account schedule name Several lines A column layout The first step when you create an account schedule is to set up an account schedule name. To access the Account Schedule Names page, open the General Ledger page, and under Analysis & Reporting, click Account Schedules. FIGURE 7.7: ACCOUNT SCHEDULE NAMES WINDOW 7-11

254 Finance Advanced in Microsoft Dynamics NAV 2013 The Account Schedule Names page contains following fields: Name Specifies the name of the account schedule. Description Specifies a description of the account schedule. Default Column Layout - Specifies a column layout name that you want to use as a default for this account schedule. Analysis View Name - Specifies the name of the analysis view on which you want the account schedule based. If you link an analysis view to an account schedule, you can use the dimensions assigned to the analysis view in the account schedule lines. Otherwise you can use only the two global dimensions in an account schedule. Note: Setting up and using analysis views is explained in this module. The ribbon of the Account Schedule Names page gives you single-click access to the following pages: Overview Runs the account schedules and shows figures based on the combination of the specified account schedule and column layout. Edit Account Schedule Opens the Account Schedule page that you use to create account schedule lines. Edit Column Layout Setup Opens the Column Layout page that you use to create account schedule columns. Account Schedules Page After you name an account schedule, you can define the lines in the Account Schedule page, accessed from the Account Schedule Names page, by clicking Edit Account Schedule in the ribbon. You provide information such as a description and which accounts to total, and set whether it appears in reports or is set up for calculations only. 7-12

255 Module 7: Financial Reporting and Analysis FIGURE 7.8: ACCOUNT SCHEDULE WINDOW To create an account schedule, you must set up several rows with the following fields. Field Row No. Description Description Shows a number for the account schedule line. The same row number can be used on more than one line. The rows with the same number are then treated as a group. For example, if the row number is included in a formula in the Totaling field, it will represent the sum of all the lines that have that row number. If the Insert Accounts function is used, this field is automatically copied from the No. field in the chart of accounts. Specifies text that will appear on the account schedule line. If the Insert Accounts function is used, this field is automatically copied from the Name field in the G/L account list. If you use an account schedule in the Finance Performance Window, the description must be unique. If the field is empty, the account schedule line is not displayed in the Finance Performance window. 7-13

256 Finance Advanced in Microsoft Dynamics NAV 2013 Field Totaling Type Description Determines which accounts within the totaling interval, specified in the Totaling field, are totaled. The options are as follows: Posting Accounts: The total is calculated from amounts in posting accounts in the chart of accounts. This is the default value. Total Accounts: The total is calculated from amounts in total and end-total accounts in the chart of accounts. Formula: The total is calculated from amounts in other rows in the account schedule. The formula is entered in the Totaling field. Set Base For Percent: Used to insert a column that displays the percentage of a total. The formula in the Totaling field on this line is used to calculate the total on which the percentage is based. This line does not appear on Account Schedule reports. Cost Type: The total is calculated from amounts in posting accounts in the chart of cost accounts. Cost Type Total: The total is calculated from amounts in total and end-total accounts in the chart of cost accounts. Cash Flow Posting Accounts: The total is calculated from amounts in posting accounts in the chart of cash flow accounts. Cash Flow Total Accounts: The total is calculated from amounts in total and end-total accounts in the chart of cash flow accounts. If you use the Insert Accounts function, accounts that have the Account Type Total or End-Total on the chart of accounts are assigned the totaling type Total Accounts. All other lines are automatically assigned the totaling type Posting Accounts. 7-14

257 Module 7: Financial Reporting and Analysis Field Totaling Description Indicates which accounts are totaled on this line. This field is filled in based on the contents in the Totaling Type field: If the Formula totaling type is assigned to the account schedule line, enter a formula that includes row numbers (or totaling intervals) from the account schedule. For the following types, enter an account number (or totaling interval) from the specified chart of accounts: o Posting Accounts o Total Accounts o Cost Type o Cost Type Total o Cash Flow Entry Accounts o Cash Flow Total Accounts When you create formulas, use the following symbols: addition: + subtraction: - multiplication: * division: / exponentiation: ^ parentheses: () percentage: % In the ribbon, the following three functions are available to insert accounts: Insert G/L Accounts: The Totaling field is automatically copied from the No. field in the G/L account list. Insert CF Accounts: The Totaling field is automatically copied from the No. field in the cash flow account list. Insert Cost Types: The Totaling field is automatically copied from the No. field in the cost type list. Note: To include a number in the formula, do not use that number as a row number in the account schedule. 7-15

258 Finance Advanced in Microsoft Dynamics NAV 2013 Field Description Row Type Determines how the amounts in the row are calculated for the period defined in the Date Filter field on the report or page. The options are as follows: Net Change: The total is calculated by using the total changes from the start to the end of the specified date range. Balance at Date: The total is calculated by using the total of all entries from the initial transaction in Microsoft Dynamics NAV through the date at the end of the specified date range. Beginning Balance: The total is calculated by using the total of all entries from the initial transaction in Microsoft Dynamics NAV to the last entry before the start of the specified date range. Amount Type Determines the type of entries that are included in the amounts in the account schedule row. The options are as follows: Net Amount: The calculated amount includes debit and credit entries. Debit Amount: The calculated amount includes only debit entries. Credit Amount: The calculated amount includes only credit entries. Show Determines whether the account schedule line is printed on the report. The options are as follows: Yes: The row is printed. No: The row is not printed. If Any Column Not Zero: The row is printed unless all amounts on the row are equal to zero. When Positive Balance: The row is printed only if the balance of the amounts on the row is positive. When Negative Balance: The row is printed only if the balance of the amounts on the row is negative. New Page If selected, there a page break is added after the current account when the account schedule is printed. 7-16

259 Module 7: Financial Reporting and Analysis Optional Account Schedule Fields The following table shows the additional columns that users can add to the Account Schedule page by using the Choose Columns function. Field Dimension Totaling Filters Bold, Italic, and Underline Show Opposite Sign Description Dimension values or dimension value ranges that are used to filter the amounts shown in the row. These filters are described in more detail in the "Filter Account Schedules Using Dimensions" procedure. If selected, the row contents are bold, italic, or underlined. Only bold formatting is displayed in the Acc. Schedule Overview page, whereas the printed Account Schedule report and exported data in Microsoft Excel worksheets display all three formats. If selected, debits in this row are displayed in reports as negative amounts (that is, with a minus sign) and credits are displayed as positive amounts. Column Layout Overview The Account Schedule column layout contains the numeric information. You can set up both the visible columns that appear in the reports and the intermediary columns that are used for calculation only. To open the Column Layout window, click Edit Column Layout Setup in the ribbon of the Account Schedule window. FIGURE 7.9: COLUMN LAYOUT WINDOW 7-17

260 Finance Advanced in Microsoft Dynamics NAV 2013 After you create a column layout, you can assign it as a default to any existing account schedule in the Account Schedule Names page. The Column Layout page contains the fields that are shown in the following table. Field Column No. Column Header Column Type Description Identifies the line for the column. The column numbers are optional and the same column number can be used on more than one line. The columns with the same number are then treated as a group. For example, if the column number is included in a formula, it will represent the sum of all the lines that share the column number. The text in this field is printed on reports that include the column. Determines how the amounts in the column are calculated. The amounts are calculated for the period defined in the Date Filter field on the report or page as follows: Formula: The column displays amounts calculated from amounts in other columns in the account schedule. Enter the formula in the Formula field. Net Change: The column displays the net change in the account balances during the period. Balance at Date: The column displays the account balances at the end of the period. Beginning Balance: The column displays the account balances at the beginning of the period. Year to Date: The column displays the net change in the account balances from the start of the fiscal year to the end of the period. Rest of Fiscal Year: The column displays the net change in the account balances from the end of the period to the end of the fiscal year in which the period ends. Entire Fiscal Year: The column displays the net change in the account balances for the fiscal year in which the period ends. 7-18

261 Module 7: Financial Reporting and Analysis Field Ledger Entry Type Description Determines the type of ledger entries that are included in the amounts in the account schedule column. The options are as follows: Entries: The total is calculated from entries. Budget Entries: The total is calculated from budget entries. The type of ledger entry is based on the Totaling Type field on the account schedule line. The following options are used: Totaling Type Entry Type Posting General Ledger Entries/General Accounts Ledger Budget Entries Total Accounts General Ledger Entries/General Ledger Budget Entries Cost Type Cost Entries Cost Type Total Cost Entries Cash Flow Entry Cash Flow Ledger Entries/Cash Accounts Flow Forecast Entries Cash Flow Total Accounts Cash Flow Ledger Entries/Cash Flow Forecast Entries Amount Type Determines the type of entries that are included in the amounts in the account schedule column. The options are as follows: Net Amount: The amount includes both credit and debit entries. Debit Amount: The amount includes debit entries only. Credit Amount: The amount includes credit entries only. Formula If Formula is selected as the Column Type, enter a formula for the line. The result of the formula is displayed in the column when the account schedule is printed. Use this field to perform calculations on other columns. Other columns are referenced through their column number. The calculation symbols are the same as those used in the row formulas. For example, to calculate the difference in percentage of the G/L entries and the budget entries, enter the following formula: 100*(Column No. of the G/L entry column/ Column No. of the G/L Budget entry column -1) 7-19

262 Finance Advanced in Microsoft Dynamics NAV 2013 Field Show Opposite Sign Description If selected, debits in this column are shown in reports as negative amounts (that is, with a minus sign) and credits are shown as positive amounts. Comparison Date Formula Date formula that specifies which dates must be used to calculate the amount in this column. Microsoft Dynamics NAV uses this formula to calculate the amount from the comparison period in relation to the period represented by the date filter on the report request. Use the standard time periods of W(eek), M(onth), Y(ear), or Q(uarter) to create the formulas. For example, -1Y is the same period one year earlier. Show If selected, the amounts in the column are shown in reports. No more than five columns in an account schedule layout can be shown in the printed report. The options are as follows: Always: All amounts in the column are always shown. This is the default value. Never: The column does not appear on reports. It is used only for calculations. When Positive: Only positive amounts (amounts that are positive before Show Opposite Sign is applied) are shown in the column. When Negative: Only negative amounts (amounts that are negative before Show Opposite Sign is applied) are shown in the column. Rounding Factor Rounding factor for amounts in the column. The default value is None, no rounding. Be aware that amounts on printed reports are rounded. For example, if 1000 is selected, all amounts are shown in thousands. Amounts in the Acc. Schedule Overview Matrix page are not rounded. 7-20

263 Column Layout Options Module 7: Financial Reporting and Analysis The following table shows the additional columns that users can add to the Column Layout page by using the Choose Columns function. Field Comparison Period Formula Business Unit, Global Dimensions, and Dimensions 3 and 4 Description Specifies which accounting periods to use when users are calculating the amount in this column. An accounting period does not have to match the calendar. But each fiscal year must have the same number of accounting periods, even though each period can be different in length. Microsoft Dynamics NAV uses the period formula to calculate the amount from the comparison period in relation to the period represented by the date filter on the report request. The abbreviations for period specifications are as follows: P = Period. LP = Last period of a fiscal year, half-year, or quarter. CP = Current period of a fiscal year, half-year, or quarter. FY = Fiscal year. For examples of formulas, press F1 to access Help for this field. Totaling fields used to create column layouts that show global dimension information across columns. When the column layout is not linked to an analysis view, the global dimensions are available in the Column Layout page. When the column layout is linked to an analysis view, the dimensions specified in the analysis view are displayed in the Column Layout page. Analysis views are linked to column layouts in the Column Layout Names page, in the Analysis View Name field. 7-21

264 Finance Advanced in Microsoft Dynamics NAV 2013 Acc. Schedule Overview Matrix With the Acc. Schedule Overview Matrix page, users can view account schedules in the various layouts they have set up. These layouts are also available in the Dimensions - Total report. To view the Acc. Schedule Overview Matrix page from the Account Schedule page, click Overview on ribbon. FIGURE 7.10: ACC. SCHEDULE OVERVIEW MATRIX WINDOW The following table shows the fields in the Acc. Schedule Overview page, on the General section. Field Account Schedule Name Column Layout Name Description To view a different row layout, select the required account schedule in this field. To view a different column layout, select the required column layout in this field. 7-22

265 View By Field Module 7: Financial Reporting and Analysis Description Specifies the date interval used to display the amounts in the account schedules. The following options are available: Day Week Month Quarter Year Accounting Period Date Filter Show Amounts in Add. Reporting Currency Specifies the dates that are used to filter the amounts on account schedule lines. If selected, report amounts are shown in the Additional Reporting Currency. Usually, the amounts are shown in the company's local currency (LCY). In the Dimension Filters section, you can set up filters for the following fields: Global Dimensions and Dimensions 3 and 4 Cost Center Cost Object Cash Flow G/L Budget Cost Budget Demonstration: Set Up an Account Schedule Scenario: Phyllis, the accounting manager at CRONUS International Ltd., must design a report to analyze the discounts granted to customers and received from vendors. She sets up the account schedule to meet the following criteria: Discounts granted to customers and discounts received from vendors are displayed in separate rows. A row displays the net discounts granted or received. The actual and budgeted discount amounts for the current month and the variance between them can be viewed. The change in the actual discount amounts from the last month to the current month can be compared. 7-23

266 Finance Advanced in Microsoft Dynamics NAV 2013 Setting up an account schedule involves three steps: 1. Create the row layout. 2. Create the column layout. 3. Combine the rows and columns. Demonstration Steps 1. Create the row layout To create a new account schedule, follow these steps: a. In the Search box, type "Account Schedules", and then click the related link. b. On the ribbon, click New to insert a new account schedule name. c. In the Name field, type "Discounts". d. In the Description field, type "Discount Analysis". e. Leave the Default Column Layout and Analysis View Name fields blank. f. On the ribbon, click Edit Account Schedule. The Account Schedule page opens. This is the page where the rows for the report are designed. It currently only contains blank lines. To create the report heading for the discount analysis, follow these steps: a. On the menu bar, click the Customize button, and then click Choose Columns. b. Add the Bold column, and then click OK to close the Customize Account Schedule page. c. On the first line, in the Description field, type "Discount Analysis". This is the report heading. d. Select the Bold check box. Note: You may have to close the Account Schedule page after you use the Choose Columns function to make the changes appear. To create the first discount account that relates to discounts granted to customers, follow these steps: a. Leave a blank line to separate the heading from the report lines. b. On the third line, in the Row No. field, type "R11". 7-24

267 Module 7: Financial Reporting and Analysis c. In the Description field, type "Discount Granted". d. In the Totaling field, type "6910". Or, you can click the drop-down arrow in the Totaling field to locate the Discount Granted account. Note: To quickly add several accounts contained in the chart of accounts, on the Actions tab of the ribbon, click Insert G/L Accounts, and select the accounts from the G/L account list. Microsoft Dynamics NAV inserts a new row for each account, with all the account information in the Row No., Description, Totaling Type, and Totaling fields. Update the Row No. fields as necessary. To create the remaining rows for granted discounts, follow these steps: a. Click the next line. b. In the Row No. field, type "R21". c. In the Description field, type "Payment Discount Granted". d. In the Totaling Field, type " ". e. Leave a blank line. f. Click the next line. g. In the Row No. field, type "R1". h. In the Description field, type "Total Discounts Granted". i. In the Totaling Type field, enter Formula. j. In the Totaling field, type "R11+R21". To create the received discount rows, follow these steps: a. Leave a blank line. b. Click the next line. c. In the Row No. field, type "R12". d. In the Description field, type "Discount Received - Retail". e. In the Totaling field, type "7140". f. Click the next line. g. In the Row No. field, type "R22". h. In the Description field, type "Discount Received - Raw Materials". i. In the Totaling field, type "7240". j. Click the next line. k. In the Row No. field, type "R32". l. In the Description field, type "Payment Discounts Received". m. In the Totaling field, type " ". n. Leave a blank line. o. Click the next line. 7-25

268 Finance Advanced in Microsoft Dynamics NAV 2013 p. In the Row No. field, type "R2". q. In the Description field, type "Total Discounts Received". r. In the Totaling Type field, enter Formula. s. In the Totaling field, type "R12+R22+R32". To create the final totaling row, follow these steps: a. Leave a blank line. b. Click the next line. c. In the Row No. field, type "R3". d. In the Description field, type "Net Discounts Granted/(Received)". e. In the Totaling Type field, enter Formula. f. In the Totaling field, type "R1+R2". g. Select the Bold check box. 2. Create the column layout. To create a basic column layout to be used with the new Discount Analysis account schedule, follow these steps: a. Open the Account Schedule - DISCOUNTS page. b. In the ribbon, click Edit Column Layout Setup. c. In the Name field, click the drop-down arrow to open the Column Layout Names page. d. On the ribbon, click New to insert a new column name. e. In the Name field, type "Basic". f. In the Description field, type "Basic Column Layout". g. With the Basic Column Layout selected, click OK. The Column Layout Names page closes, and the cursor is in the Name field with BASIC displayed as the name. h. Press TAB or ENTER. The Basic Column Layout page opens, with blank lines. Define the columns by creating a line for each column. Note: All columns in this demonstration are set as follows: o o o o Amount Type is Net Amount. Show Opposite Sign check box is clear. Show is set to Always. Rounding Factor is None. 7-26

269 Module 7: Financial Reporting and Analysis To enter the actual, budget, and variance total columns for the Discount Analysis report, follow these steps: a. On the first line, in the Column No. field, type "C10". b. In the Column Header field, type "Actual". c. Make sure that the Column Type is set to Net Change. d. Make sure that the Ledger Entry Type is set to Entries. Do not change the settings in the remaining fields. e. Click the next line. f. In the Column No. field, type "C11". g. In the Column Header field, type "Budget". h. Make sure that the Column Type is set to Net Change. i. In the Ledger Entry Type field, enter Budget Entries. j. Click the next line. k. In the Column No. field, type "C12". l. In the Column Header field, type "Variance". m. In the Column Type field, enter Formula. n. Make sure that the Ledger Entry Type is set to Entries. o. In the Formula field, type "C10-C11". To enter the comparison columns, follow these steps: a. Click the next line. b. In the Column No. field, type "C13". c. In the Column Header field, type "Actual Last Month". d. Make sure that the Column Type is set to Net Change. e. Make sure that the Ledger Entry Type is set to Entries. f. In the Comparison Date Formula field, type "-1M". g. Click the next line. h. In the Column No. field, type "C14". i. In the Column Header field, type "Change from Last Month". j. In the Column Type field, enter Formula. k. Make sure that the Ledger Entry Type is set to Entries. l. In the Formula field, type "C10-C13". m. Click OK to close the Column Layout page. 3. Combine rows and columns. The final step in setting up the account schedule is to combine the row and column layouts: a. Click OK on the Account Schedule page to go back to the Account Schedule Names page. 7-27

270 Finance Advanced in Microsoft Dynamics NAV 2013 b. On the Discount Analysis account schedule line, in the Default Column Layout field, enter Basic. c. Click OK to close the Account Schedule Names page. The Discount Analysis account schedule setup is completed. Next, review the account schedule in the Acc. Schedule Overview Matrix page. 4. Review the account schedule. To review the Discount Analysis account schedule for January 2014, follow these steps: a. Open the Account Schedule Names page. b. Click the Discount Analysis line, and then click Overview in the ribbon. FIGURE 7.11: ACC. SCHEDULE OVERVIEW MATRIX FOR DISCOUNT ANALYSIS WINDOW 7-28

271 Module 7: Financial Reporting and Analysis The information displayed in this matrix can be changed by setting filters (business units, budgets, dates, and so on) or changing the rows or columns shown in the report. In the Acc. Schedule Overview Matrix page, when you click an amount field that is calculated based on a formula, the formula calculation used to calculate the amount is displayed. To view a formula, follow these steps: a. Click the Actual column for row R1. You receive the following message: "Row formula: R11+R21." FIGURE 7.12: ACCOUNT SCHEDULE ROW FORMULA WINDOW b. Click OK to close the message dialog box. In addition, if you click an amount field that is based on G/L Entries or G/L Budget Entries, the Chart of Accounts (G/L) page opens. The Chart of Accounts (G/L) page summarizes information from the G/L Budget Entries and the G/L Entries in one page. To view the G/L summaries, follow these steps: a. Click the Actual column for row R11. The Chart of Accounts (G/L) page opens, displaying the values that were used to calculate the amount in the selected field. b. Close the Chart of Accounts (G/L) page. The Discount Analysis account schedule for January 2014 shows he following: o o More discounts were granted to customers than were received from vendors. There was a large decrease in the discounts granted from December 2013 to January In summary, the account schedule has provided valuable information about how much money the company is spending or making on discounts, and how the net change fluctuates from month to month. 7-29

272 Finance Advanced in Microsoft Dynamics NAV 2013 You do not have to create or print the account schedule again to view the same report for a different period. Just change the date in the Date Filter or select a different time period in the View by field on the Acc. Schedule Overview page. Additionally, you can create more discount reports by combining another column layout with the Discount Analysis account schedule rows. You can also use the Basic Column Layout with other account schedule rows to make the same comparisons with other financial information, such as administrative expenses or sales income. Print Account Schedule Reports There are several ways to use account schedules. You can run them on your computer screen, you can print them, or you can export them to Excel. You can print account schedules from the following locations: Account Schedule page. Acc. Schedule Overview page. Under Reports on the General Ledger page. The report contains the same options and filters as the Acc. Schedule Overview page. However,, the report is limited to printing the first five columns of the account schedule. The Acc. Schedule Overview Matrix page can show all columns. To print the Revenue Account Schedule from Reports on the General Ledger page, follow these steps: 1. On the General Ledger page, under Financial Statement, click Account Schedule. 7-30

273 Module 7: Financial Reporting and Analysis FIGURE 7.13: ACCOUNT SCHEDULE REPORT REQUEST FORM WINDOW 2. In the Acc. Schedule Name field, enter Revenue. 3. Press TAB or ENTER. The cursor moves to the Column Layout Name field, where a column layout is automatically entered. 4. Enter Default to use the Standard Column Layout. 5. Click OK to close the Column Layout Names page. 6. In the Date Filter field, type "01/01/14..01/31/14". 7. Click Preview to review the Revenue Account Schedule. The Revenue Account Schedule report opens, and revenue description, net change, and balance at date information are displayed in print format. 8. Close the Print Preview page. To print from the Acc. Schedule Overview page, follow these steps: 1. Open the Account Schedule Names page. 2. Click the Revenue line, and on the ribbon, click Edit Account Schedule. 3. On the Action Pane, click Print. 7-31

274 Finance Advanced in Microsoft Dynamics NAV 2013 When you print from this page, the default layout information is automatically copied to the Account Schedule report request form. 4. Close the Account Schedule report request form. To print from the Acc. Schedule Overview Matrix page, follow these steps: 1. On the Account Schedule page, click Overview. 2. Set filters, and then click Show Matrix. 3. On the Actions tab on the ribbon, click Print. When you print from this page, the layout, date filter, dimension filters, and budget filters are automatically copied to the Account Schedule report request form. Export Account Schedules to Excel You can export account schedules can be exported from the Acc. Schedule Overview Matrix page. Exporting to Excel enables you to control your data by using Excel functions and features, and share data with others working outside the Microsoft Dynamics NAV environment. To export an account schedule, follow these steps: 1. In the Search box, type "Account Schedules", and then click the related link. 2. Locate the REVENUE account schedule, and then click Overview in the ribbon. 3. In the Acc. Schedule Overview page, click Export to Excel in the ribbon. 4. The Option field uses Create Workbook to create a new workbook. If you have an existing Excel spreadsheet, you can also click the dropdown arrow, select Update Workbook, and then enter the Excel Workbook File Name and Worksheet Name. 5. Click OK. 6. In the information dialog page, click the correct server access to Microsoft Office Excel Application option, and then click OK. Microsoft Dynamics NAV opens Excel and exports the data and the filter information from the selected account schedule. The worksheet name is Revenue, the same as the account schedule name. Note: Amounts that were totals in the Acc. Schedule Overview Matrix page are not exported as formulas in Excel. The value of the total are copied to a cell in the Excel worksheet. In addition, rounding factors are not applied in the amounts exported to Excel 7-32

275 Module 7: Financial Reporting and Analysis Filter Account Schedules Using Dimensions You can extend the reporting function of the account schedules by filtering on dimensions. This lets you create financial reports by dimension. When you use dimensions in account schedules, there is a difference between using global dimensions and the other dimensions: Global dimensions: Global dimensions are always available in account schedules and column layouts that have no analysis view assigned. Other dimensions: Other dimensions are available only if they are included in an analysis view that is assigned to the account schedule or the column layout. Note: The setup and use of analysis views in account schedules is explained in the Combine Analysis Views with Account Schedules lesson in this module. Dimension filtering can be applied by row and by column. Dimension filtering on a row applies to all amounts in all columns in that row. Column layouts can also be set up with dimension filters. Filters set on rows and filters set on columns can potentially interact. When an amount is to be printed in a particular cell in the account schedule, it must pass through both the row and the column filters. Demonstration: Filter Account Schedules Using Global Dimensions Scenario: Phyllis, the accounting manager at CRONUS International Ltd., notices that payment discount is granted by different departments. To have an overview of the payment discount granted by department, she decides to change the DISCOUNTS, by filtering the Payment Discount Granted line by DEPARTMENT dimension. Afterward she runs the account schedule for December 2013 to review the result. Demonstration Steps 1. Add the DEPARTMENT dimension to the DISCOUNTS account schedule. To add the DEPARTMENT dimension to the DISCOUNTS account schedule, follow these steps: a. In the Search box, type "Account Schedules", and then click the related link. 7-33

276 Finance Advanced in Microsoft Dynamics NAV 2013 b. Locate the DISCOUNTS account schedule, and in the ribbon, click Edit Account Schedule. c. Click the Microsoft Dynamics Application menu > Customize > Choose Columns. d. Add the Department Code Totaling field. e. Click OK. f. Reopen the Account Schedule page for customizations to take effect. 2. Filter the Payment Discount Granted line by DEPARTMENT dimension. To filter the Payment Discount Granted line by DEPARTMENT dimension, follow these steps: a. Go to the line with Row No. R21, and change the description to Payment Discount Granted ADM. b. In the Department Code Totaling field, enter ADM. c. Right-click the next line, and select New Line. d. In the Row No. field, enter R31. e. In the Description field, type Payment Discount Granted PROD. f. In the Totaling field, type " ". g. In the Department Code Totaling field, type "PROD". h. Right-click the next line, and select New Line. i. In the Row No. field, type "R41". j. In the Description field, type Payment Discount Granted SALES. k. In the Totaling field, type " ". l. In the Department Code Totaling field, type "SALES". m. Go to line with Row No. R1, and in the Totaling field, change the totaling formula to "R11+R21+R31+R41". 7-34

277 Module 7: Financial Reporting and Analysis FIGURE 7.14: ACCOUNT SCHEDULE WINDOW 3. Run the DISCOUNTS account schedule to review the result. To run the DISCOUNTS account schedule for December 2013, follow these steps: a. In the ribbon of the Account Schedule page, click Overview. b. Verify that the DISCOUNTS account schedule is combined with the BASIC column layout. c. In the View by field, enter Month. d. Verify that the date filter field contains 12/01/13..12/31/13. The payment discount granted is now filtered by department and shows the payment discounts granted by each department. 7-35

278 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 7.15: ACC. SCHEDULE OVERVIEW WINDOW 7-36

279 Module 7: Financial Reporting and Analysis Lab 7.1: Create a Detailed Account Schedule Scenario You are asked to create a small management analysis report no more than two pages long. Give the account schedule a code of MGTRPT and its own column layout with a code of MANAGEMENT. The first page in the report must contain the following information: The report heading is Goods and Materials Profit Analysis. It is bold and underlined. The first section must show the sales, the sales discounts, and a line that displays the total sales reduced by the sales discounts. Use row numbers R10-R30 and provide a bold heading of Sales - Goods and Materials. The second section must show the costs of goods and materials sold before purchase discounts, the purchase discounts, and a line that displays the total cost of goods sold reduced by the purchase discounts. Use row numbers R40-R60 and provide a bold heading of Cost of Goods Sold - Goods and Materials. The third section must show the Gross Loss / Profit on Goods and Materials, and the line must be bold. Use row number R70. Enter a blank line between the sections. The second page must contain the following information: An analysis of the Gross Loss / Profit on Goods and Materials by Department, by using row numbers R80-R110 and including the following departments: o o o Administration Production Sales A heading line, which must be bold and underlined. The final row containing the Total Gross Profit / Loss, which bold and uses row number R

280 Finance Advanced in Microsoft Dynamics NAV 2013 The columns in the report must contain the following information: Column 1: the Net Change G/L entries from the current fiscal year. All entries are to be shown with the opposite sign. Column 2: the Net Change G/L entries from the previous fiscal year. All entries are to be shown with the opposite sign. Column 3: a formula to calculate the difference between current and fiscal year results in percentage terms. Review the row and column layouts in the Acc. Schedule Overview Matrix page, and then preview the printed report. Finally, export the results to a new workbook in Excel. Objectives This lab reinforces your understanding of the process required to create a detailed account schedule. Exercise 1: Create a Detailed Account Schedule Task 1: Create Account Schedule Rows and Account Schedule Columns High Level Steps 1. Open the Account Schedule Names page and create the MGTRPT account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the first page lines as specified in the scenario. 4. Create the second page lines as specified in the scenario. 5. Open the Column Layout Names page and create the MANAGEMENT column layout. 6. Create the column layout as specified in the scenario. 7. Assign the column layout to the account schedule. Detailed Steps 1. Open the Account Schedule Names page and create the MGTRPT account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the first page lines as specified in the scenario. 4. Create the second page lines as specified in the scenario. 5. Open the Column Layout Names page and create the MANAGEMENT column layout. 7-38

281 Module 7: Financial Reporting and Analysis 6. Create the column layout as specified in the scenario. 7. Assign the column layout to the account schedule. To create the account schedule name and first page, follow these steps: a. In the Search box, type "Account Schedules", and then click the related link. b. Click New. c. In the Name field, type "MGTRPT". d. In the Description field, type "Management Analysis Report". e. With the Management Analysis Report account schedule selected, click Edit Account Schedule. f. Click the Application menu > Customize > Choose Columns. g. Add the Department Code Totaling, Bold, and Underline columns. h. Click OK to close the Choose Columns page. i. Click OK. j. Reopen the Account Schedule page for customizations to take effect. k. Enter the first page lines as shown in the following table. Row No. Description Totaling Type Totaling Bold Underline Goods and Materials Profit Analysis Yes Yes Sales - Goods and Materials Yes R10 Sales Total Accounts R20 Sales Discounts Posting Accounts 6910 R30 Net Sales Formula R10+R20 Cost of Goods Sold - Goods and Materials Yes R40 COGS before Purchase Discounts Formula R60-R50 R50 Purchase Discounts Posting Accounts R60 Net COGS Total Accounts R70 Gross Profit/(Loss) on Goods and Materials Formula R30+R60 Yes 7-39

282 Finance Advanced in Microsoft Dynamics NAV 2013 To insert a new page, follow these steps: l. Click the next line. m. Select the New Page check box. Enter the second page as shown in the following table. Row No. Description Totaling Type Totaling Department Code Totaling Bold Underline Gross Profit/(Loss) by Department Yes Yes R80 Administration Department Posting Accounts R90 Production Department Posting Accounts R100 Sales Department Posting Accounts ADM PROD SALES R110 Not Allocated to a Department Formula R70-R80- R90-R100 R120 Total Gross Profit/(Loss) Formula R80+R90+ R100+R11 0 Yes To create the column layout, follow these steps: n. On the Actions tab of the ribbon, click Edit Column Layout Setup. o. In the Name field, click the drop-down arrow. p. Click New. q. In the Name field, type "Management". r. In the Description field, type "Management Report Column Layout". s. With the Management Report Column Layout selected, click OK. t. Press TAB or ENTER. 7-40

283 Module 7: Financial Reporting and Analysis u. Enter the layout as indicated in the following table. Column No. Column Header Column Type Ledger Entry Type Formula Show Opposite Sign Comparison Date Formula C1 Current Fiscal Year Net Change Entries Yes C2 Prior Fiscal Year Net Change Entries Yes -1Y C3 Variance % Formula Entries 100*(C1/ C2-1) To assign the column header to the account schedule, follow these steps: v. Click OK to close the Column Layout page. w. Press ESC to return to the Account Schedule Names page. x. On the line for Management Analysis Report, in the Default Column Layout field, enter Management. y. Press TAB or ENTER. Task 2: Review the Account Schedule in the Acc. Schedule Overview Matrix page High Level Steps 1. Open the Acc. Schedule Overview Matrix page. Detailed Steps 1. Open the Acc. Schedule Overview Matrix page. To view the rows and column layouts for January 2014, follow these steps: a. With the Management Analysis Report line selected, click Edit Account Schedule. b. On the Home tab of the ribbon, click Overview. c. In the View by field, enter Month. d. In the Date Filter field, type "01/01/14..01/31/14". 7-41

284 Finance Advanced in Microsoft Dynamics NAV 2013 Task 3: Preview and Export the Results to Excel High Level Steps 1. Preview the printed report. 2. Export the results to Excel. Detailed Steps 1. Preview the printed report. To print preview the report from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Actions tab of the ribbon, click Print. b. Click Preview. c. Review and close the Print Preview page. 2. Export the results to Excel. To export the account schedule to Excel from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Home tab of the ribbon, click Export to Excel. b. Make sure that the Option field is set to Create Workbook. c. Click OK. d. In the information dialog page, choose the proper server access to Excel option, and then click OK. e. Review and then close Excel. 7-42

285 Module 7: Financial Reporting and Analysis Lab 7.2: Create a Cost Account Schedule Scenario CRONUS International Ltd. calculates and posts depreciations in the general ledger based on national accounting legislation. However, for reporting the company has to depreciate fixed assets faster. CRONUS uses cost accounting and cost types to post additional depreciations outside the general ledger. You are asked to create an account schedule that shows the general ledger depreciations instead of the cost accounting depreciations. Give the account schedule the name of DEPRRPT and its own column layout with a code of RATIO. The report has following requirements: The report heading is Depreciation Analysis, and is bold. The first section must show the general ledger depreciations for buildings, equipment, and vehicles. Provide a bold heading for this section of Depreciations General Ledger." The general ledger depreciations should be totaled. For each detail line, the percentage of the total should be calculated. The second section must show the cost accounting depreciations for buildings, equipment, and vehicles. Provide a bold heading for this section of Depreciations Cost Accounting." The cost accounting depreciations should be totaled. For each detail line, the percentage of the total should be calculated. The third section must show the difference between the general ledger depreciations and the cost accounting depreciations. Start with row number D10 and use an increment of 10. The columns in the report must contain the following information: Column 1: the net change entries of the current period. Column 2: the percentage of the total depreciations. Review the row and column layouts in the Acc. Schedule Overview Matrix page, and then preview the printed report. Finally, export the results to a new workbook in Excel. 7-43

286 Finance Advanced in Microsoft Dynamics NAV 2013 Objectives This lab reinforces your understanding of the process required to create a detailed cost account schedule. Exercise 1: Create a Cost Account Schedule Task 1: Create Account Schedule Rows and Account Schedule Columns High Level Steps 1. Open the Account Schedule Names page and create the DEPRRPT account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the lines as specified in the scenario. 4. Open the Column Layout Names page and create the RATIO column layout. 5. Create the column layout as specified in the scenario. 6. Assign the column layout to the account schedule. Detailed Steps 1. Open the Account Schedule Names page and create the DEPRRPT account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the lines as specified in the scenario. 4. Open the Column Layout Names page and create the RATIO column layout. 5. Create the column layout as specified in the scenario. 6. Assign the column layout to the account schedule. To create the account schedule name and first page, follow these steps: a. In the Search box, type "Account Schedules", and then click the related link. b. Click New. c. In the Name field, type "DEPRRPT". d. In the Description field, type "Depreciation Analysis". e. With the Depreciation Analysis account schedule selected, click Edit Account Schedule. 7-44

287 Module 7: Financial Reporting and Analysis f. Click the Application menu > Customize > Choose Columns. g. Add the Bold column. h. Click OK to close the Choose Columns page. i. Enter the first page lines as shown in the following table. Row No. Description Totaling Type Totaling Bold Depreciation Analysis Yes Depreciation General Ledger Yes Total% Set Base For Percent D40 D10 Depreciation Buildings Posting Accounts 8810 D20 Depreciation Equipment Posting Accounts 8820 D30 Depreciation Vehicles Posting Accounts 8830 D40 Total - Depreciation - General Ledger Formula D10+D20+D30 Yes Depreciation - Cost Accounting Yes Total% Set Base For Percent D80 D50 Depreciation Buildings Cost Type 8810 D60 Depreciation Equipment Cost Type 8820 D70 Depreciation Vehicles Cost Type 8830 D80 Total - Depreciation - Cost Accounting Formula D50+D60+D70 Yes D90 Variance Formula D80-D40 Yes To create the column layout, follow these steps: a. On the Actions tab of the ribbon, click Edit Column Layout Setup. b. In the Name field, click the drop-down arrow. c. Click New. d. In the Name field, type "Ratio". e. In the Description field, type "Ratio Column Layout". f. With the Ratio Column Layout selected, click OK. g. Press TAB or ENTER. h. Enter the layout as indicated in the following table. Column No. Column Header Column Type Ledger Entry Type Formula C10 Net change Net Change Entries C20 Ratio Formula Entries C10% 7-45

288 Finance Advanced in Microsoft Dynamics NAV 2013 To assign the column header to the account schedule, follow these steps: a. Click OK to close the Column Layout page. b. Press ESC to return to the Account Schedule Names page. c. On the line for Depreciation Analysis, in the Default Column Layout field, enter Ratio. d. Press TAB or ENTER. Task 2: Review the Account Schedule High Level Steps 1. Open the Acc. Schedule Overview Matrix page. Detailed Steps 1. Open the Acc. Schedule Overview Matrix page. To view the rows and column layouts for fiscal year 2013, follow these steps: a. With the Depreciation Analysis line selected, click Edit Account Schedule. b. On the Home tab of the ribbon, click Overview. c. In the View by field, enter Year. d. In the Date Filter field, type "01/01/13..12/31/13". 7-46

289 Module 7: Financial Reporting and Analysis FIGURE 7.16: ACC. SCHEDULE OVERVIEW WINDOW 7-47

290 Finance Advanced in Microsoft Dynamics NAV 2013 Task 3: Preview and Export the Results to Excel High Level Steps 1. Preview the printed report. 2. Export the results to Excel. Detailed Steps 1. Preview the printed report. To print preview the report from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Actions tab of the ribbon, click Print. b. Click Preview. c. Review and close the Print Preview page. 2. Export the results to Excel. d. e. f. To export the account schedule to Excel from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Home tab of the ribbon, click Export to Excel. b. Make sure that the Option field is set to Create Workbook. c. Click OK. d. In the information dialog page, choose the proper server access to Excel option, and then click OK. e. Review and then close Excel. 7-48

291 Module 7: Financial Reporting and Analysis Lab 7.3: Create a Cash Flow Account Schedule Scenario Phyllis, the accounting manager at CRONUS International Ltd., wants to give the users of the accounting department more insight into the cash flow situation, but only based on CRONUS trade. You are asked to create an account schedule that shows a simplified cash flow overview, based on sales and purchase trade. Give the account schedule the name of CFTRADE and use the existing column layout with a code of CASHFLOW. The report has following requirements: The report heading is Trade Cash Flow Analysis, and is bold. The first section must show the sales and receivables cash flow, based on following cash flow entries: o o Receivables Open sales orders Provide a bold heading for this section of Sales & Receivables." The sales and receivables should be totaled. The second section must show the purchases and payables cash flow, based on following cash flow entries: o o Payables Open purchase orders Provide a bold heading for this section of Purchases & Payables." The purchases and payables should be totaled. The third section must show include following calculations: o o The difference between sales and purchases. An index calculation where 100 means that sales and purchases are equal. If there are more sales than purchases, the index is greater than 100. Start with row number CF10 and use an increment of 10. Review the row and column layouts in the Acc. Schedule Overview Matrix page, and then preview the printed report. Finally, export the results to a new workbook in Excel. 7-49

292 Finance Advanced in Microsoft Dynamics NAV 2013 Exercise 1: Create a Cash Flow Account Schedule Task 1: Create Account Schedule Rows and Account Schedule Columns High Level Steps 1. Open the Account Schedule Names page and create the CFTRADE account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the lines as specified in the scenario. 4. Assign the CASHFLOW column layout to the account schedule. Detailed Steps 1. Open the Account Schedule Names page and create the CFTRADE account schedule. 2. In the Account Schedule page, show any columns needed to create the rows. 3. Create the lines as specified in the scenario. 4. Assign the CASHFLOW column layout to the account schedule. To create the account schedule name and first page, follow these steps: a. In the Search box, type "Account Schedules", and then click the related link. b. Click New. c. In the Name field, type "CFTRADE". d. In the Description field, type "Trade Cash Flow Analysis". e. In the Default Column Layout field, enter CASHFLOW. f. With the Trade Cash Flow Analysis account schedule selected, click Edit Account Schedule. g. Click the Application menu > Customize > Choose Columns. h. Add the Bold column. i. Click OK to close the Choose Columns page. j. Enter the first page lines as shown in the following table. Row No. Description Totaling Type Totaling Bold Trade Cash Flow Analysis Yes Sales & Receivables Yes CF10 Receivables Cash Flow Entry Accounts 0010 CF20 Open Sales Orders Cash Flow Entry Accounts

293 Module 7: Financial Reporting and Analysis Row No. Description Totaling Type Totaling Bold CF30 Total Sales & Receivables Formula CF10+CF20 Yes Purchases & Payables Yes CF40 Payables Cash Flow Entry Accounts 1010 CF50 Open Purchase Orders Cash Flow Entry Accounts 1020 CF60 Total Purchases & Payables Formula CF40+CF50 Yes CF70 Difference: Sales - Purchases Formula CF30+CF60 Yes CF80 Index Sales/Purchases Formula -CF30/CF60*100 Yes Task 2: Review the Account Schedule High Level Steps 1. Open the Acc. Schedule Overview Matrix page. Detailed Steps 1. Open the Acc. Schedule Overview Matrix page. To view the rows and column layouts for January 2014, follow these steps: a. With the Trade Cash Flow Analysis line selected, click Edit Account Schedule. b. On the Home tab of the ribbon, click Overview. c. In the View by field, enter Month. d. In the Date Filter field, type "01/01/14..01/31/14". 7-51

294 Finance Advanced in Microsoft Dynamics NAV 2013 FIGURE 7.17: ACC. SCHEDULE OVERVIEW WINDOW 7-52

295 Module 7: Financial Reporting and Analysis Task 3: Preview and Export the Results to Excel High Level Steps 1. Preview the printed report. 2. Export the results to Excel. Detailed Steps 1. Preview the printed report. To print preview the report from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Actions tab of the ribbon, click Print. b. Click Preview. c. Review and close the Print Preview page. 2. Export the results to Excel. d. e. f. To export the account schedule to Excel from the Acc. Schedule Overview Matrix page, follow these steps: a. On the Home tab of the ribbon, click Export to Excel. b. Make sure that the Option field is set to Create Workbook. c. Click OK. d. In the information dialog page, choose the proper server access to Excel option and then click OK. e. Review and then close Excel. 7-53

296 Finance Advanced in Microsoft Dynamics NAV 2013 Test Your Knowledge Test your knowledge with the following questions. 1. Which of the following are the steps to create an Account Schedule? ( ) Create a Name, create Rows (lines), and select the Overview ( ) Create Rows (lines), create Columns, and select the Overview ( ) Create a Name, create Columns, and select the Overview ( ) Create a Name, create Rows (lines), and create Columns 2. When you define an Account Schedule, the Row Type field in the row definition and the Column Type field in the Column Layout must be compatible. Which of the following is an example of an incompatible selection? ( ) A Row Type of Net Change and a Column Type of Net Change ( ) A Row Type of Balance at Date and a Column Type of Beginning Balance ( ) A Row Type of Beginning Balance and a Column Type of Net Change ( ) A Row Type of Balance at Date and a Column Type of Balance at Date 3. Which of the following analysis pages do you use to review the total G/L entries for a single account over several time periods? ( ) G/L Account Balance ( ) G/L Balance ( ) Detail Trial Balance ( ) Acc. Schedule Overview 4. When you export an account schedule to Excel, which of the following two options are available? ( ) Add entries / Replace entries ( ) Create Workbook / Update Workbook ( ) Create Workbook / Replace Workbook ( ) New Workbook / Existing Workbook 7-54

297 Module 7: Financial Reporting and Analysis 5. Which of the following is not a Totaling Type option in the Account Schedule page? ( ) Cash Flow Total Accounts ( ) Cost Type ( ) Total Accounts ( ) Cost Type Entry Account 7-55

298 Finance Advanced in Microsoft Dynamics NAV 2013 Analysis by Dimensions Account Schedule analysis capabilities are primarily based on the G/L accounts, cost types, and cash flow accounts. The analysis view is a way to view financial data for particular output needs based on criteria that are specified in a business. For an analysis view, G/L entries, G/L budget entries, and cash flow forecast entries are grouped by criteria such as the following: G/L accounts Period Business units Up to four dimensions In other words, if an entry is posted to a particular account with one of the four dimensions selected for an analysis view, this entry information will be included in the analysis view as an analysis view entry. FIGURE 7.18: ANALYSIS VIEW DATA STRUCTURE WINDOW This diagram, "Analysis View Data Structure," shows that analysis views are not directly based on G/L entries, but on analysis view entries. You define the criteria such as the dimensions in the analysis view card. 7-56

299 Analysis View Card Overview Module 7: Financial Reporting and Analysis The Analysis View Card page contains the criteria for creating the analysis view entries for the Analysis by Dimensions page. These criteria are based on your reporting requirements. For example, if you want to report on sales by region and customer group, you have to create an analysis view card with at least following criteria: G/L accounts Region dimension Customer group dimension To open the Analysis View Card page go to Financial Management > General Ledger > Analysis by Dimensions. In the Analysis View List page, double-click on a line. FIGURE 7.19: ANALYSIS VIEW CARD WINDOW 7-57

300 Finance Advanced in Microsoft Dynamics NAV 2013 The General FastTab contains the fields shown in the following table. Field Code and Name Description A unique identifier and description of the analysis view. Account Source One of the account sources that you can include in an analysis view. By specifying an account source, you can filter entries in the Analysis by Dimensions window. You have the following options: G/L Account Cash Flow Account G/L Account Filter Date Compression Starting Date Last Date Updated Last Entry No. Based on the account source, you specify the accounts that are included in an analysis view. Setting filters also specifies that only entries posted to the filter accounts are included when an analysis view is updated. By using date compression, you determine the level of detail for an analysis view. For example, to analyze financial information for an analysis view monthly, use the Month date compression to sum all entries in a given month and create one single entry for the month. Microsoft Dynamics NAV assigns the date of the first day in the period to the overall period. However, closing entries are given the date of the last posted entry in that period. All entries (based on the account source) posted on or after the entered starting date are compressed to the level selected in the Date Compression field and included in the analysis view. The posting date for the compressed entries will be the first date of the related period. For example, if compressing by month with a starting date of 1/1/14, the compressed entries for each month will have a posting date of 1/1/14, 2/1/14, 3/1/14, and so on. All entries before the starting date are compressed into one entry for each account, for each dimension combination. The posting date of these prior entries is the day before the starting date. The date on which the analysis view was last updated. The number of the last entry posted before you updated the analysis view. If entries were posted since the analysis view was last updated, the analysis view does not include these entries. 7-58

301 Module 7: Financial Reporting and Analysis Field Last Budget Entry No. Update on Posting Include Budgets Blocked Description The number of the last budget entry entered before you updated the analysis view. If additional budget entries were entered since the analysis view was last updated, the analysis view is not be up to date. If selected, Microsoft Dynamics NAV automatically updates the analysis view every time that an entry is posted. To select or clear the Update on Posting field, you have to use the Enable Update on Posting and Disable Update on Posting buttons on the Home tab. This function is not valid for Cash Flow. This means that if you select Cash Flow Account as the account source for the analysis view, this field is dimmed and you cannot select it. If selected, analysis view budget entries are included when you update an analysis view. Updating both analysis view entries and analysis view budget entries concurrently guarantees that up-to-date information is used in the comparison of actual and budgeted figures. This function is not valid for Cash Flow. If selected, the analysis view cannot be updated. Neither the Update on Posting function nor the Update Analysis View batch job can be used to update an analysis view while it is blocked. Note: The Update on Posting function only updates the analysis view with G/L entries. To update with budget entries, you must use the Update batch job or the Update Analysis View batch job. The Dimensions FastTab contains the four dimensions that you can use as filters in the Analysis by Dimensions page. These dimensions enable users to investigate and monitor relationships between entries and the dimension information attached to them. The amounts are automatically updated when the Dimension Value with which to filter is entered. The dimensions entered on the Dimensions FastTab also determine the dimension combinations that you must consider when you compress the G/L entries into analysis view entries. G/L Entries with the same compression period and combination of dimension values for the dimensions on the Dimensions FastTab are compressed into one entry. 7-59

302 Finance Advanced in Microsoft Dynamics NAV 2013 The analysis view can be continually updated with new entries by using the following methods: Click Update on a specific analysis view card. Run the Update Analysis Views batch job. On the Home tab of the analysis view card, click Enable Update on Posting to select the Update on Posting check box. Be aware that automatically updating an analysis view every time that an entry is posted might create a performance issue. Add Dimension Value Filters You can additionally filter the entries used to make the analysis view entries by using dimension value filters. Setting a dimension value filter establishes that only entries with the dimension values set in the filter are to be included in an analysis view. For example, an analysis view is set up for the purposes of analyzing the sales activity of a particular salesperson. The Analysis View filter is then used to specify that only entries with the company-defined dimension called Salesperson and with the specified dimension value of that specific salesperson can be included in that analysis view. To add dimension value filters, follow these steps: 1. On the Analysis View Card page, click the Home tab of the ribbon, and then click Filter. 2. In the Dimension Code field, enter the dimension to filter. 3. In the Dimension Value Filter field, enter the dimension value to be included in the analysis view. 4. Repeat steps 2-3 for additional dimension value filters. 5. Click OK to close the Analysis View Filter page. 6. In the ribbon, click Update. 7. Click Yes to update the Analysis View. 8. Click OK to close the Analysis View Card page. The Update function refreshes the amounts that are displayed when this filter is applied in the Analysis by Dimensions page. Analysis by Dimensions Matrix In the Analysis by Dimensions Matrix page, you can view and analyze amounts derived from analysis views that are created. The available dimensions also include period and account. 7-60

303 Module 7: Financial Reporting and Analysis You can analyze entries from various perspectives by selecting dimensions on each axis in the matrix. You can also filter entries to create a highly specific picture of a company's activities. You run the Analysis by Dimensions Matrix page from the Analysis by Dimensions page, on which you can specify the layout, dimension filters, and several options such as time interval. To access the Analysis by Dimensions page on the General Ledger page, by click Analysis by Dimensions under Analysis & Reporting, select the relevant analysis view, and then click Edit Analysis View in the ribbon. FIGURE 7.20: ANALYSIS BY DIMENSIONS WINDOW 7-61

304 Finance Advanced in Microsoft Dynamics NAV 2013 The Analysis by Dimensions page contains the FastTabs shown in the following table that specify the information displayed on the Analysis by Dimensions Matrix page. FastTab General Filters Options Matrix Options Description Defines which dimensions are used as the columns and the lines. Specifies filters for the analysis. This includes Dates, G/L Accounts, Budgets, and dimension values for the dimensions set up on the Analysis View card. This further filters the Analysis View entries that were created when the analysis was updated. Modifies how the amounts calculated by the Analysis View Entries are displayed. Specifies the time period displayed for each line, and indicates the column heading ranges. For more information about the fields on these FastTabs, press F1 to access Help. Note: Information displayed by using the View by option of Day must be used only if the analysis view entries have a Date Compression of None or Day. For example, if analysis view entries are compressed by Month for January 2014, when Day is used, it will appear as if all entries occurred on January 1, To move to the Analysis by Dimensions Matrix, click Show Matrix in the ribbon. The matrix shows lines and columns that are based on the Show as Lines and Show as Columns fields on the Analysis by Dimensions page. By assigning dimension to these fields, you can create a report that has very specific analysis data. 7-62

305 Module 7: Financial Reporting and Analysis FIGURE 7.21: ANALYSIS BY DIMENSIONS MATRIX WINDOW In the Analysis by Dimensions Matrix page, notice the following: Click any field to display a list of the analysis view entries that make up the amount in the field. Click the Amount field for a specific analysis view entry shows the source entries that make up this analysis view entry. 7-63

306 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 7.4: Create an Analysis View Scenario As the accounting manager at CRONUS International Ltd., you must create a new analysis view for Regional Sales Analysis, with a code of Regional. Create this analysis view by using the following criteria: Compression to occur monthly, starting January 1, Update the analysis view on G/L posting, and include the budgeted amounts. Use the dimension code AREA as a filter dimension. Update the analysis view after creation, and then review it by Month in the Analysis by Dimensions Matrix page. Objectives This lab reinforces your understanding of the process required to create an analysis view. Exercise 1: Create an Analysis View Task 1: Create the Analysis View High Level Steps 1. Open the Analysis View Card page. 2. Insert a new analysis view as specified in the scenario. 3. Update the analysis view. Detailed Steps 1. Open the Analysis View Card page. 2. Insert a new analysis view as specified in the scenario. 3. Update the analysis view. To create the analysis view card, follow these steps: a. In the Search box, type "Analysis Views", and then click the related link. b. In the ribbon, click New. c. In the Code field, type "Regional". d. In the Name field, type "Regional Sales Analysis". e. In the Account Source field, enter G/L Account. f. In the Account Filter field, type " ". 7-64

307 Module 7: Financial Reporting and Analysis g. In the Date Compression field, enter Month. h. In the Starting Date field, type "01/01/13". i. On the Home tab, click Enable Update on Posting to select Update on Posting. j. Select Include Budgets. k. On the Dimensions FastTab, in the Dimension 1 Code field, enter Area. l. On the ribbon, click Update. m. Click Yes to update the analysis view. n. Click OK to close the Analysis View Card page. Task 2: Review the Analysis View High Level Steps 1. Open the Analysis by Dimensions page, and set filters. 2. Review the results of the Regional Sales analysis view in the matrix. Detailed Steps 1. Open the Analysis by Dimensions page, and set filters. 2. Review the results of the Regional Sales analysis view in the matrix. To review the results of the Regional Sales analysis view, follow these steps: a. In Search box, type "Analysis by Dimensions", and then click the related link. b. Click the Regional Sales Analysis line, and then click Edit Analysis View. c. In the Show as Lines field, type "AREA". d. Expand the Matrix Options FastTab. e. In the View by field, enter Month. f. On the Home tab, click Show Matrix. 7-65

308 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 7.5: Create a Cash Flow Analysis View Scenario To mitigate risk, Phyllis the accounting manager at CRONUS International Ltd. asks you to create a report that shows the cash flow by region of sales and purchases. You decide to use the analysis views to run this report. Create this analysis view by using the following criteria: The time interval for this report is month. The report will be used from January 2014 onward. The dimension AREA will be a filter dimension. Update the analysis view, and review it by region for January Exercise 1: Create a Cash Flow Analysis View Task 1: Create the Analysis View High Level Steps 1. Open the Analysis View Card page. 2. Insert a new analysis view as specified in the scenario. 3. Update the analysis view. Detailed Steps 1. Open the Analysis View Card page. 2. Insert a new analysis view as specified in the scenario. 3. Update the analysis view. To create the analysis view card, follow these steps: a. In the Search box, type "Analysis Views", and then click the related link. b. In the ribbon, click New. c. In the Code field, type "CFTRADEREG". d. In the Name field, type "Trade cash flow by region". e. In the Account Source field, enter Cash Flow Account. f. In the Account Filter field, type " ". g. In the Date Compression field, enter Month. h. In the Starting Date field, type "01/01/14". 7-66

309 Module 7: Financial Reporting and Analysis i. On the Dimensions FastTab, in the Dimension 1 Code field, enter Area. j. On the ribbon, click Update. k. Click Yes to update the analysis view. l. Click OK to close the Analysis View Card page. Task 2: Review the Analysis View High Level Steps 1. Open the Analysis by Dimensions page and set filters. 2. Review the results of the Trade cash flow by region analysis view in the matrix. Detailed Steps 1. Open the Analysis by Dimensions page and set filters. 2. Review the results of the Trade cash flow by region analysis view in the matrix. To review the results of the Trade cash flow by region analysis view, follow these steps: a. In Search box, type "Analysis by Dimensions", and then click the related link. b. Click the Trade cash flow by region line, and then click Edit Analysis View. c. Expand the Matrix Options FastTab. d. In the Show as Columns field, type "AREA". e. In the View by field, enter Month. f. On the ribbon, click Show Matrix. 7-67

310 Finance Advanced in Microsoft Dynamics NAV 2013 The result looks as follows: FIGURE 7.22: ANALYSIS BY DIMENSIONS MATRIX WINDOW 7-68

311 Module 7: Financial Reporting and Analysis Export Analysis Views to Microsoft Excel Exporting the analysis view to Microsoft Excel enables you to distribute the dimension information to external parties who do not have access to Microsoft Dynamics NAV. When you export the analysis view to Excel, Microsoft Dynamics NAV creates a pivot table in Excel. You can also use the Excel chart functions to display the analysis view graphically. Demonstration: Export an Analysis View to Microsoft Excel Scenario: Phyllis, the accounting manager at CRONUS International Ltd., is asked to provide the Revenue analysis view for the fourth quarter of She exports the analysis view to Microsoft Excel by using the following criteria: Show as Lines: G/L Account Show as Columns: Period Date Filter: 10/01/13..12/31/13 Show: Actual Amounts Show Amount Field: Amount View by: Month View as: Net Change The exported analysis view is used as an example to explain the worksheets. Demonstration Steps 1. Export the Revenue analysis view to Microsoft Excel. a. In the Search box, type "Analysis by Dimensions", and then click the related link. b. Click the Sales Revenue line. c. On the ribbon, click Edit Analysis View. d. On the General FastTab, make sure that the Show as Lines field is set to G/L Account. e. Make sure that the Show as Columns field is set to Period. f. On the Filters FastTab, in the Date Filter field, type "10/01/13..12/31/13". g. Expand the Options FastTab, and make sure that the Show field is set to Actual Amounts and the Show Amount Field field is set to Amount. h. On the Matrix Options FastTab, in the View by field, enter Month. i. In the View as field, enter Net Change. 7-69

312 Finance Advanced in Microsoft Dynamics NAV 2013 j. On the ribbon, click Show Matrix. k. On the ribbon, click Export to Excel. l. In the information dialog box, choose the proper server access to Excel option, and then click OK. During this process, Microsoft Dynamics NAV performs the following: o o o Exports the information to a text file. Opens the text file in Microsoft Excel. Creates a pivot table that is based on the information in the text file. FIGURE 7.23: ANALYSIS VIEW IN MICROSOFT EXCEL PIVOT TABLE WINDOW m. When you have finished looking at the pivot table that Microsoft Excel has generated, save the file to your desktop as an Excel workbook named Revenue Analysis. 7-70

313 Module 7: Financial Reporting and Analysis Analysis by Dimension Settings The number of entries and the information that is included in the text file that is created when you export to Microsoft Excel depends on the settings in the Analysis by Dimensions page. The effect of these settings is shown in the following table. Field Account Filter and Date Filter Business Unit Filter Budget Filter Dimension Filters Show Show Amount Field Closing Entries Rounding Factor Setting Filters the number of entries exported based on Account No. or Posting Date. When you use the Export to Excel function in a consolidated company, you can use this field to filter the number of entries exported based on Business Unit code. Filters the number of analysis view budget entries exported based on Budget No. Filters the number of entries exported based on the dimensions included in the analysis view. If Variance, Variance%, or Index% is selected, a warning is displayed because no entries will be exported. This is because these amount types are calculated in the page and not recorded on the analysis view entries. If Actual Amounts or Budgeted Amounts is selected, Microsoft Dynamics NAV always exports both. Microsoft Dynamics NAV exports Amount, Debit Amount, and Credit Amount for actual amounts and Amount for Budgeted Amounts, regardless of what is selected in this field. If Debit Amount or Credit Amount is selected for Budgeted Amounts, a warning is displayed. If Include is selected, entries on closing dates are included in the analysis by dimensions and therefore exported to Microsoft Excel. This field does not affect the information exported to Microsoft Excel. To round and format the numeric information, do so in Microsoft Excel. 7-71

314 Finance Advanced in Microsoft Dynamics NAV 2013 Field Show Amounts in Add. Reporting Currency Show Column Name Setting If an additional reporting currency is set up, the amounts appearing as Amount, Debit Amount, Credit Amount, and Budgeted Amount in the Data Sheet are additional reporting currency amounts. If an additional reporting currency is not used, nothing is exported. If selected and a dimension code or G/L Account is selected in the Show as Lines field, the exported information includes the Name of the account or dimension value. If Period is selected in the Show as Lines field, only the date information is exported. If clear, only the account No. or dimension value Code is exported. Show Opposite Sign If selected, the amounts exported to the lines will have the sign opposite to the Amount field on the analysis view entries. View as The number of entries exported is also affected by whether Net Change or Balance to Date is selected as the amount type. If you use Net Change, all entries within the date filter are exported. If you use Balance to Date, Microsoft Dynamics NAV ignores the starting date and exports all entries up to and including the ending date in the filter. Microsoft Excel Workbook Overview The workbook in Microsoft Excel contains three worksheets, in reverse order of how they appear on the workbook: Data sheet General information sheet Pivot table sheet 7-72

315 Data Sheet Module 7: Financial Reporting and Analysis The data sheet can be separated into two main sections: The first section contains information from the analysis view entries and analysis view budget entries. The second section contains all the accounts, dimensions, and periods for which there is no data. If the second section is not included, the pivot table only includes accounts and dimension values with data. In the first section, each line in the sheet represents an analysis view entry or analysis view budget entry. Notice that the settings in the Analysis by Dimensions page only affect the number of entries exported. For each entry exported, all data is exported regardless of what was selected as lines or columns. Therefore, each line usually contains the information in the following table. Information Account Level n Dimension Codes Description The account for the line (a G/L account or a cash flow account). To display the account hierarchy of Begin- Total and End-Total accounts in the pivot table, Microsoft Dynamics NAV must use the grouping functions in Microsoft Excel. Microsoft Dynamics NAV uses the Indentation field of a posting account ( G/L accounts) or entry ( cash flow accounts) to fill in the Begin-Total account structure to which it belongs. If there is no hierarchy within the chart of accounts, the entries are displayed with G/L Account Level 0 only. For example, account 6120 is included in the range that begins with account Therefore, all data related to account 6120 is rolled up to account 6105, and all data related to 6105 is rolled up to account G/L Account Level 0: 6100 G/L Account Level 1: 6105 G/L Account Level 2: 6120 Dimension values can also be hierarchical. The same principles for hierarchical G/L accounts apply to hierarchical dimension values. If there is no hierarchy within the dimension values, the entries are displayed with dimension code level 0 only. 7-73

316 Finance Advanced in Microsoft Dynamics NAV 2013 Information Dates Description Each Microsoft Excel line has the period information calculated based on the posting date for the analysis view entry or analysis view budget entry. The periods include day, week, month, quarter, year, and accounting period. If the analysis view entries are compressed by a period greater than a day, the date calculated for the Day period is the starting date of the compressed period. It is not the posting date of the underlying G/L transaction. This is the same as when you view analysis view entries in the Analysis by Dimensions page. Amounts The amounts displayed are based on the entry types: If the Microsoft Excel line relates to an analysis view entry, the line contains the Amount, Debit Amount, and Credit Amount from the entry. If the Microsoft Excel line relates to an analysis view budget entry, the line contains the Budgeted Amount (Amount field) from the entry. The second section of the data sheet contains all the accounts, dimension values, and periods without a entries. The exception is the Day period. Regardless of the compression of the analysis view, the data sheet will only include days with data. This is to limit the number of lines created in the Microsoft Excel sheet. General Information Sheet Microsoft Dynamics NAV records the settings from the Analysis View Card and the Analysis by Dimensions pages at the time that the analysis view was exported. Note: This information is only at the time of export and is not updated for changes in the pivot table or changes to Microsoft Dynamics NAV. The sheet displays the contents of the following fields on the Analysis View Card page: Analysis View Code Analysis View Name G/L Account Filter Date Compression Starting Date Last Date Updated 7-74

317 Module 7: Financial Reporting and Analysis The sheet displays the contents of the following fields on the Analysis by Dimensions page: Date Filter Account Filter Budget Filter Dimension Filters Closing Entries Show Opposite Sign View as If any of the filters are empty, they are not displayed on the general information sheet. Pivot Table Sheet Microsoft Dynamics NAV creates pivot fields based on each column of data exported to the data sheet and forms the pivot table from the pivot fields. The fields in the Analysis by Dimensions page determine which pivot fields to use as rows and columns in the pivot table. Field Show as Lines Show as Columns Setting The content of this field determines which pivot field is used as rows in the pivot table. The content of this field determines which pivot field is used as columns in the pivot table. To determine the data pivot fields to display in the pivot table, Microsoft Dynamics NAV uses the Show and Show Amount Field fields. The actual amount, debit amount, credit amount, or budgeted amount can be displayed. Note: Only Actual Amounts and Budgeted Amounts can be shown in the pivot table. This is because the other amount types are not stored on the analysis view entries and are not exported. However, calculated fields can be created in the pivot table to represent Variance, Variance%, and Index% amounts. Benefits of the Pivot Table Pivot tables help manipulate data quickly within Microsoft Excel. You can change the rows, columns, and data displayed in the pivot table in the layout fields. However, if formatting data in Microsoft Excel, you may be unable to keep the changes. Therefore, you may want to change the layout in the Analysis by Dimensions page and re-export the information. 7-75

318 Finance Advanced in Microsoft Dynamics NAV 2013 In addition to how quickly you can manipulate data in Microsoft Excel, the pivot table also includes the following benefits: Viewing more than one type of amount. For example, you can include both actual and budgeted amounts in the pivot table. Showing more than one pivot field for each column or row. For example, the field can show all the G/L account levels for each row or each AREA by Month in each column. Creating calculated pivot fields to compare actual to budgeted amounts. Exported data is not limited to the pivot fields created by Microsoft Dynamics NAV. Creating a chart linked to the pivot table using a wizard in Microsoft Excel, allowing the graphical display of dimension analysis. The pivot table automatically updates changes that were made to the chart layout. Limitations to Data Displayed in Pivot Tables When you export and display information in an Microsoft Excel pivot table, there are some limitations in the following: Totaling accounts and dimensions. Begin-Total and End-Total accounts and dimensions. Sorting account numbers and numeric dimension values. Exporting Balance at Date amounts. The following sections explain these limitations in detail. Totaling Accounts and Dimensions Totaling accounts have no posted entries and are never included in the exported accounts. If you implement a hierarchical chart of accounts by using Totaling accounts instead of Begin-Total and End-Total accounts, you can only export posting accounts. The same limitation applies with the Totaling dimension values. Begin-Total and End-Total Accounts and Dimensions If a hierarchical chart of accounts that uses Begin-Total and End-Total accounts is exported, show all the account level pivot fields to view the whole chart of accounts in the pivot table. 7-76

319 Module 7: Financial Reporting and Analysis Only the Begin-Total accounts are exported. The End-Total account information is included in the pivot table as a subtotal of the posting accounts assigned to the Begin-Total account. The pivot table line for the End-Total information has a description including the Begin-Total account no. and total. The same rules apply with Begin-Total and End-Total dimension values. Numeric Sorting Account Numbers and Numeric Dimension Values Account numbers that are numeric are always sorted as numbers in Microsoft Excel. When a chart of accounts with account numbers of different lengths is exported, the sorting may be incorrect. To achieve the correct text sorting, export both the account number and name by selecting the Show Column Name check box in the Analysis by Dimensions page. Exporting Balance at Date Amounts If you are exporting an analysis with the View as field set to Balance at Date, a starting date in the Date Filter field is ignored. All analysis view entries before the ending date in the filter are exported to Microsoft Excel so that the correct running balance can be displayed in the pivot table. Hide any balance to date periods in the pivot table as needed. In addition, if the ending date in the filter is after the date of the last analysis view entry, the pivot table does not include the periods without data. This is to reduce the number of entries exported to Microsoft Excel. 7-77

320 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 7.6: Export an Analysis View to Microsoft Excel Scenario The accounting manager has asked you to create some financial analyses that can be used for a presentation. The analyses must be easily made into graphs and include the company's dimension information. All dimension information must include the name of the dimension so that the board members can understand the analyses. You are responsible for the following expense analyses: Monthly actual expenses for all departments for the 2013 financial year. Monthly budgeted expenses for all departments for the 2013 financial year. Save the exported files as Excel workbooks to your desktop with the following names: 2013 Actual Expenses by Department 2013 Budgeted Expenses by Department Note: Because this analysis view is set up to compress data monthly, enter the data filter after the View by option is selected. Exercise 1: Export an Analysis View to Microsoft Excel Task 1: Create Two Analyses for the Presentation High Level Steps 1. Open the Analysis by Dimensions page. 2. Set up the header as specified in the scenario for the first analysis. 3. Export the file to Microsoft Excel. 4. Save the file as specified in the scenario, and close Microsoft Excel. 5. In the Analysis by Dimensions page, set up the header as specified in the scenario for the second analysis. Detailed Steps 1. Open the Analysis by Dimensions page. 2. Set up the header as specified in the scenario for the first analysis. 3. Export the file to Microsoft Excel. 4. Save the file as specified in the scenario, and close Microsoft Excel. 7-78

321 Module 7: Financial Reporting and Analysis 5. In the Analysis by Dimensions page, set up the header as specified in the scenario for the second analysis. a. In the Search box, type "Analysis by Dimensions", and then click the related link. b. Click the Departmental Expenses line, and then click Edit Analysis View in the ribbon. c. On the General FastTab, make sure that the Show as Lines field is set to G/L Account. d. In the Show as Columns field, enter Department. e. In the G/L Account Filter field, type " ". f. On the Options FastTab, make sure that the Show field is set to Actual Amounts and the Show Amount Field field is set to Amount. g. Select the Show Column Name check box. h. On the Matrix Options FastTab, in the View by field, enter Month. i. In the View as field, enter Net Change. j. On the Filters FastTab, in the Date Filter field, type "01/01/13..12/31/13". k. On the ribbon, click Show Matrix. Task 2: Export Each Analysis to Microsoft Excel High Level Steps 1. Export the file to Microsoft Excel. 2. Save the file as specified in the scenario, and close Microsoft Excel. Detailed Steps 1. Export the file to Microsoft Excel. 2. Save the file as specified in the scenario, and close Microsoft Excel. a. On ribbon, click Export to Excel. b. In the information dialog box, choose the proper server access to Excel option, and then click OK. c. Review the exported file. d. Click the Office Button, and then click Save As. e. In the Save in field, select Desktop. f. In the Save as type field, select Excel Workbook. g. In the File Name field, type "2013 Actual Expenses by Department". h. Click Save. i. Close Microsoft Excel. j. Close the Analysis by Dimensions Matrix page. 7-79

322 Finance Advanced in Microsoft Dynamics NAV 2013 To create the monthly budgeted expenses for all departments for the 2013 financial year, follow these steps: a. On the Analysis by Dimensions page for the DEPTEXP analysis view, make sure that the Date Filter field is set to 01/01/13..12/31/13. b. In the Budget Filter field, enter c. On the Options FastTab, enter Budgeted Amounts in the Show field. d. Make sure that Show Amount Field is set to Amount, and that the Show Column Name check box is selected. e. On the Matrix Options FastTab, make sure that the View by field is set to Month, and the View as field is set to Net Change. f. On the ribbon, click Show Matrix. g. On the ribbon, click Export to Excel. h. In the information dialog box, click the proper server access to Excel option, and then click OK. i. Review the exported file. j. Click the Office button, and then click Save As. k. In the Save in field, select Desktop. l. In the Save as type field, select Excel Workbook. m. In the File Name field, type "2013 Budgeted Expenses by Department". n. Click Save. o. Close Microsoft Excel. 7-80

323 Dimension-Based Reports Module 7: Financial Reporting and Analysis When you use dimensions, there are two reports that are based on analysis views that you can print: Dimensions Total Report Dimensions Detail Report Dimensions Total Report The Dimensions - Total report displays a classification of how dimensions were used on entries over a period. This classification is made by using total amounts. The report provides an overview of dimension information linked to a particular analysis view by using sum totals consisting of many entries. Therefore, only totals for dimensions or dimension combinations included in the selected analysis view are displayed in the report. You use this report to analyze how dimensions were used for particular activities and to gain an overall impression of how dimensions are being used in the company. The following table shows the fields that are contained in the Dimensions - Total request form. Field Analysis View Code Include Dimensions Column Layout Name Date Filter G/L Budget Name Description The analysis view the report is to be based on. The dimensions to include in the report. Only dimensions set up on the selected analysis view can be included. At least one dimension must be selected to generate a report. A default G/L Account filter will be copied from the Analysis View card, but can be changed in the Dimension Selection page. The column layout to be used on the report. Filters entries by date, using a particular date or a time interval. The budget that the report is based on, if the selected column layout includes budget figures. 7-81

324 Finance Advanced in Microsoft Dynamics NAV 2013 Field Print Empty Lines Show Amounts in Add. Reporting Currency Description If selected, the report includes dimensions and dimension values that have a balance equal to zero. If selected, the amounts on the report are shown in the additional reporting currency. Selecting dimensions on the report involves assigning levels to the dimensions, therefore creating a hierarchy. No more than four levels can be assigned. FIGURE 7.24: DIMENSION SELECTION WINDOW You can filter the report even more by entering specific dimension values in the Dimension Value Filter field for the dimensions. Note: There are many things to consider when assigning levels. For example, if a dimension with many dimension values is placed at a lower level, the report may be very long. Similarly, if there are many G/L accounts and the G/L accounts are placed at a low level, the report may also be very long. In this situation, we recommend that you put the G/L accounts or dimension at a higher level, such as Level

325 Module 7: Financial Reporting and Analysis Demonstration: Generate the Dimensions - Total Report Scenario: Phyllis, the accounting manager at CRONUS, is reviewing January 2014 revenue entries and wants to see how Area dimensions for G/L accounts were used. She runs the Dimensions - Total report for the Revenue analysis view, by using the Default column layout, for January To provide a list of the total for each Area dimension value for each G/L account, the G/L account dimension is assigned as Level 1 and the Area dimension is assigned as Level 2. Demonstration Steps 1. Generate the Dimensions Total report. a. On the General Ledger page, under Reports, click Dimensions - Total. b. In the Analysis View Code field, enter REVENUE. c. In the Include Dimensions field, click the AssistEdit (...) button. d. In the Level field for G/L Account, enter Level 1. e. In the Level field for Area, enter Level 2. f. Click OK to close the Dimension Selection page. g. In the Column Layout Name field, enter DEFAULT. h. In the Date Filter field, type "01/01/14..01/31/14". i. Click Preview to view the report. j. Review the report, and then close the Print Preview page. Dimensions Detail Report The Dimensions - Detail report displays a detailed classification of how dimensions were used on entries over a selected period. The entries shown in the report are the G/L entries that were used to create analysis view entries for the selected analysis view. Therefore, only entries with dimensions or dimension combinations that are included in the selected analysis view are included in the report. This report can be used to investigate the following: Which activities use which dimensions. How individual dimensions are combined with other dimensions on specific entries. 7-83

326 Finance Advanced in Microsoft Dynamics NAV 2013 The fields on the Dimensions - Detail request form resemble those in the Dimensions - Total report, except that the column layout is not selected, and a standard format is included in the report. The levels for the dimensions and G/L accounts are entered in a similar manner to the way that they are entered in the Dimensions - Total report. Demonstration: Generate the Dimensions - Detail Report Scenario: To review the entries that are made up of the Area dimension by G/L account totals on the Dimensions - Total report, Phyllis, the accounting manager, runs the Dimensions - Detail report by using similar filtering options. Demonstration Steps 1. Generate the Dimensions Detail report. a. On the General Ledger page, under Reports, click Dimensions - Detail. b. In the Analysis View Code field, enter REVENUE. c. In the Include Dimensions field, click the AssistEdit button. d. On the Actions menu, click Edit List. e. In the Level field for G/L Account, enter Level 1. f. In the Level field for Area, enter Level 2. g. Click OK to close the Dimension Selection page. h. In the Date Filter field, type "01/01/14..01/31/14". i. Click Preview. The report shows the ledger entries separated into debit and credit entries. j. Review the report, and then close the Print Preview page. Cash Flow Dimensions Detail Report The Cash Flow Dimensions Detail report shows a detailed classification of how dimensions were used on entries over a selected period. The entries that are shown in the report are linked to a particular cash flow analysis view. Therefore, only entries with dimensions or dimension combinations that are included in the analysis view that you have selected are included in the report. You can use the report to investigate which activities use which dimensions, and how individual dimensions are combined with other dimensions on specific entries. You can define what is included in the report by filling the fields on the Options FastTab. 7-84

327 Module 7: Financial Reporting and Analysis Demonstration: Generate the Cash Flow Dimensions Detail Report Scenario: Phyllis, the accounting manager at CRONUS, is reviewing January 2014 cash flow entries and wants to see how Area dimensions for cash flow accounts were used. She runs the Cash Flow Dimensions - Detail report for the CASHFLOW analysis view for January To provide a listing of the total for each Area dimension value for each G/L account, the G/L account dimension is assigned as Level 1 and the Area dimension is assigned as Level 2. Demonstration Steps 1. Generate the Cash Flow Dimensions Detail report. a. In the Search box, type "Cash Flow Dimensions Detail", and then click the related link. b. In the Analysis View Code field, enter CASHFLOW. c. In the Include Dimensions field, click the AssistEdit button. d. In the Level field for G/L Account, enter Level 1. e. In the Level field for Area, enter Level 2. f. Click OK to close the Dimension Selection page. g. In the Date Filter field, type "01/01/14..01/31/14". h. Click Preview to view the report. i. Review the report, and then close the Print Preview page. Combine Analysis Views with Account Schedules If you want to use dimensions other than the two global ones in an account schedule, you can assign an existing analysis view to an account schedule. By doing this, you can use up to four dimensions in an account schedule. Assigning an analysis view changes the entries used to create the amounts in the account schedule from G/L entries to analysis view entries. If you link an analysis view to an account schedule, you can filter amounts in rows by using the Dimensions Totaling fields in the Account Schedule page. By assigning an analysis view to a column layout, you have the same filter ability, but then on a column level. Note: If you set up a column layout with an analysis view, and you apply a dimension filter in the column layout, then you can only use that column layout with an account schedule that has the same analysis view assigned. 7-85

328 Finance Advanced in Microsoft Dynamics NAV 2013 Assign an Analysis View to an Account Schedule or Column Layout To assign an analysis view to an account schedule, follow these steps: 1. In the Search box, type "Account Schedules", and then click the related link. 2. In the Analysis View Name field for the relevant account schedule, enter the analysis view to be assigned to this account schedule. 3. Click OK to close the Account Schedule Names page. To assign an analysis view to a column layout, follow these steps: 1. In the Search box, type "Account Schedules", and then click the related link. 2. In the ribbon, click Edit Column Layout Setup. 3. In the Name field click the drop-down to open the Column Layout Names page. 4. In the Analysis View Name field for the relevant column layout, enter the analysis view to be assigned to this account schedule. 5. Click OK to close the Column Layout Names page. Verify Changes After Combining Analysis Views with Account Schedules To verify changes to the entries by using analysis views, follow these steps: 1. On the Account Schedule Names page, click the Revenues line. 2. Notice that it contains the REVENUE analysis view. 3. On the ribbon, click Overview. 4. On the header, in the View by field, enter Month. 5. On Row No. 12, click the Net Change field. The Chart of Accs. (Analysis View) page opens, displaying balances for the account. 6. Click the Net Change field. The Analysis View Entries page opens, displaying the analysis view entries that make up the Net Change. 7. Press ESC to return to the Account Schedule Names page. 7-86

329 Module 7: Financial Reporting and Analysis 8. On the Revenue line, clear the Analysis View Name field. 9. On the ribbon, click Overview. 10. On the header, in the View by field, enter Month. 11. On Row No. 12, click the Net Change field. The Chart of Accounts (G/L) page opens, displaying balances for the account. 12. Click the Net Change field. The General Ledger Entries page opens, displaying the G/L entries that make up the Net Change. 13. Close the open pages. 7-87

330 Finance Advanced in Microsoft Dynamics NAV 2013 Lab 7.7: Combine an Analysis View with an Account Schedule Scenario The current REVENUES account schedule shows revenue by area. You must modify this account schedule to include revenue for the same accounts by large, medium, and small customers. To achieve this, modify the existing account schedule as follows: Assign the CUSTOMER analysis view. Insert three customer lines after the area rows in the account schedule. Use a similar setup as that for the area rows, except filter on customer groups. Insert blank lines to separate the groups and final total. It is helpful to show the Customergroup Totaling Code field on the Account Schedule page. After you complete the setup, preview the Acc. Schedule Overview Matrix page for the January 2014 period. Objectives This lab reinforces your understanding of the process required to combine an analysis view with an account schedule. Exercise 1: Combine an Analysis View with an Account Schedule Task 1: Modify the Revenue Account Schedule High Level Steps 1. Open the Account Schedule Names page, and assign the analysis view as specified in the scenario. 2. Open the Account Schedule page, and show the Customergroup Code Totaling field. 3. Insert the three customer group lines as specified in the scenario. 4. Insert the blank lines as specified in the scenario. 7-88

331 Detailed Steps Module 7: Financial Reporting and Analysis 1. Open the Account Schedule Names page, and assign the analysis view as specified in the scenario. 2. Open the Account Schedule page, and show the Customergroup Code Totaling field. 3. Insert the three customer group lines as specified in the scenario. 4. Insert the blank lines as specified in the scenario. a. In the Search box, type "Account Schedules", and then click the related link. b. In the Analysis View Name field for the Revenue account schedule, enter CUSTOMER. c. On the ribbon, click Edit Account Schedule. d. If the Customergroup Code Totaling column is not displayed in the Revenues Account Schedule, use the Choose Columns function to add the Customergroup Code Totaling column. Make sure that you are still in the Revenue account schedule after you display this column. e. In the Account Schedule page, right-click the Revenue, Total row and then select New Line. f. In the Description field, type "Revenue Large Customers, Total". g. In the Totaling field, type the same G/L account filter from the field above. h. In the Customergroup Code Totaling field, enter Large. i. Click OK to close the Dimension Value List page. j. Right-click the next line, and then select New Line. k. In the Description field, type "Revenue Medium Customers, Total". l. In the Totaling field, type the same G/L account filter from the field above. m. In the Customergroup Code Totaling field, enter Medium. n. Click OK to close the Dimension Value List page. o. Right-click the next line, and then select New Line. p. In the Description field, type "Revenue Small Customers, Total". q. In the Totaling field, type the same G/L account filter from the field above. r. In the Customergroup Code Totaling field, enter Small. s. Click OK to close the Dimension Value List page. t. Right-click the Revenue Large Customers, Total line, select New Line, and then press ENTER to insert a blank line. u. Right-click the Revenue, Total line, select New Line, and then press ENTER to insert a blank line. 7-89

332 Finance Advanced in Microsoft Dynamics NAV 2013 Task 2: Preview the Changes in the Acc. Schedule Overview Matrix Page High Level Steps 1. Open the Acc. Schedule Overview page, and set filters. 2. Review the changes in the matrix view. Detailed Steps 1. Open the Acc. Schedule Overview page, and set filters. 2. Review the changes in the matrix view. a. On the ribbon, click Overview. b. On the header, in the View by field, enter Month. 7-90

333 Finance Performance Charts Module 7: Financial Reporting and Analysis In Microsoft Dynamics NAV 2013 you can use the following two types of charts to graphically display data: Generic charts Can be set up for every table. Specific charts Are based on specific tables, such as the account schedules and analysis reports. One of the specific chart types available in Microsoft Dynamics NAV 2013 is the finance performance chart. The finance performance chart shows financial performance indicators based on account schedule values. This enables you to combine financial figures in multiple ways to analyze performance and see trends in different graphical views. This window in the role center functions as a chart holder for all the financial performance indicators that you generate from your account schedule values. You can select from a list of predefined finance charts by clicking Select Chart and then select from the list in the Account Schedule Chart List window. You can edit existing charts or create new charts by combining account schedule columns and rows in many ways and displayed with different chart types. The x-axis of the chart can be based on either account schedule columns, account schedule rows, or a period as defined by a date interval and period length. The calculated account schedule values are displayed in LCY along the y-axis. When you select a graphical element, the source window, such as the Account Schedule window, opens. From there, you can drill down to, for example, the ledger entries that resulted from the transactions that are represented by the graphical element in question. Note: The Finance Performance chart is available in the following role centers: Accounting Manager President President Small Business 7-91

334 Finance Advanced in Microsoft Dynamics NAV 2013 Demonstration: Finance Performance Chart Scenario: Phyllis, the accounting manager at CRONUS International Ltd., uses the REVENUE account schedule, combined with the REVENUE analysis view, to analyze and compare the EU and non-eu sales. She now wants to create a Finance Performance chart in her role center that gives her a graphical overview of this analysis. She creates a column chart type that shows the monthly actual sales against the monthly budgeted sales, and then for EU and non-eu. She sets up the chart to display the period November 2013 to January 2014 by month. Note: To perform this demonstration, it is advised that you use the ACCOUNTING MANAGER role center. Demonstration Steps 1. Create the account schedule chart REVENUE. a. In the ACCOUNTING MANAGER role center, click the Application menu > Customize > Customize This Page. b. In the Available Parts section, click Finance Performance, and then click Add. c. Click Move Left to move the part to the left side of the role center. d. Click OK. e. In the ACCOUNTING MANAGER role center, in the Finance Performance part, click Select Chart to open the Account Schedule Chart list. f. On the ribbon, click New. g. In the Name field, enter REVENUE. h. In the Account Schedule Name field, enter REVENUE. i. In the Column Layout Name field, enter BUDGANALYS. j. In the Base X-Axis on field, enter Period. k. In the Start Date field, enter 11/01/13. l. In the Period Length field, enter Month. m. In the No. of Periods field, enter 3. To define the chart type and the columns to display, you have to select measures for the chart. 7-92

335 Module 7: Financial Reporting and Analysis To select measures for the chart, follow these steps: a. Click the Measures (Y-Axis) FastTab. b. On the Measures (Y-Axis) FastTab, click Edit. c. Clear the fields that have the value Column. d. For the Revenue Area , Total line, in the Net Change column, enter Column. e. For the Revenue Area , Total line, in the Budget column, enter Column. f. For the Revenue Area , Total line, in the Net Change column, enter Column. g. For the Revenue Area , Total line, in the Budget column, enter Column. h. For the Revenue, no Area code, Total line, in the Net Change column, enter Column. i. For the Revenue, no Area code, Total line, in the Budget column, enter Column. FIGURE 7.25: ACC. SCHEDULE MATRIX WINDOW j. Click OK. k. Click OK. l. Click OK. 7-93

336 Finance Advanced in Microsoft Dynamics NAV 2013 You can now see the chart in your role center. If you rest the mouse pointer on the columns, you see information on each column displayed. FIGURE 7.26: ROLE CENTER ACCOUNTING MANAGER WINDOW If you click one of the columns, you see an overview of the entries, represented by that column. Note: Account schedule line descriptions should be unique to have the data displayed in the chart. 7-94

337 Module Review Module 7: Financial Reporting and Analysis Module Review and Takeaways Microsoft Dynamics NAV contains a wealth of business data that is ready to be turned into business intelligence. The dimensions available in Microsoft Dynamics NAV provide companies with an effective method of analyzing their financial information. By using analysis views, companies can benefit even more by accessing financial and budget information based on specific G/L criteria. Together, dimensions and analysis views enable companies to analyze trends and compare various characteristics across a range of entries. Through Microsoft Dynamics NAV internal reporting and analysis tools such as the chart of accounts, account schedules, and Excel users can identify, organize, and share information that is needed for making strategic business decisions. Test Your Knowledge Test your knowledge with the following questions. 1. Which of the following statements is true about budgets and analysis views? ( ) Budgets cannot be used in analysis views ( ) The Update on Posting option does not work with budgets. ( ) By default, budgets are included in an analysis view. ( ) You have to assign a budget name in the analysis view card. 2. How many dimensions can you assign to an analysis view? ( ) 4 ( ) 2 ( ) 8 ( ) Unlimited 3. If you want to use dimensions other than the two global ones in an account schedule, what do you have to do? ( ) Assign the dimensions in the Account Schedule Matrix page. ( ) Set up Account Schedule Dimensions. 7-95

338 Finance Advanced in Microsoft Dynamics NAV 2013 ( ) Set up an analysis view with the required dimensions, and assign it to an account schedule. ( ) Nothing. By default all the dimensions are available in an account schedule. 4. If you want to export an analysis view to Microsoft Excel, from which page do you run the Export to Excel function? ( ) Analysis View page ( ) Account by Dimensions page ( ) Analysis by Dimensions Matrix page ( ) Account Schedule page 5. Which of the following statements about totaling accounts and dimensions is true? ( ) You can include them in the exported accounts by selecting the field on the Options FastTab. ( ) They have no posted entries and are never included in the exported accounts. ( ) You can display them as values in the exported data but cannot include the underlying formula. ( ) You can display them as values in the exported data and include the underlying formula. 7-96

339 Test Your Knowledge Solutions Module 7: Financial Reporting and Analysis Create a Cash Flow Account Schedule 1. Which of the following are the steps to create an Account Schedule? ( ) Create a Name, create Rows (lines), and select the Overview ( ) Create Rows (lines), create Columns, and select the Overview ( ) Create a Name, create Columns, and select the Overview ( ) Create a Name, create Rows (lines), and create Columns 2. When you define an Account Schedule, the Row Type field in the row definition and the Column Type field in the Column Layout must be compatible. Which of the following is an example of an incompatible selection? ( ) A Row Type of Net Change and a Column Type of Net Change ( ) A Row Type of Balance at Date and a Column Type of Beginning Balance ( ) A Row Type of Beginning Balance and a Column Type of Net Change ( ) A Row Type of Balance at Date and a Column Type of Balance at Date 3. Which of the following analysis pages do you use to review the total G/L entries for a single account over several time periods? ( ) G/L Account Balance ( ) G/L Balance ( ) Detail Trial Balance ( ) Acc. Schedule Overview 4. When you export an account schedule to Excel, which of the following two options are available? ( ) Add entries / Replace entries ( ) Create Workbook / Update Workbook ( ) Create Workbook / Replace Workbook ( ) New Workbook / Existing Workbook 7-97

340 Finance Advanced in Microsoft Dynamics NAV Which of the following is not a Totaling Type option in the Account Schedule page? ( ) Cash Flow Total Accounts ( ) Cost Type ( ) Total Accounts ( ) Cost Type Entry Account Module Review and Takeaways 1. Which of the following statements is true about budgets and analysis views? ( ) Budgets cannot be used in analysis views ( ) The Update on Posting option does not work with budgets. ( ) By default, budgets are included in an analysis view. ( ) You have to assign a budget name in the analysis view card. 2. How many dimensions can you assign to an analysis view? ( ) 4 ( ) 2 ( ) 8 ( ) Unlimited 3. If you want to use dimensions other than the two global ones in an account schedule, what do you have to do? ( ) Assign the dimensions in the Account Schedule Matrix page. ( ) Set up Account Schedule Dimensions. ( ) Set up an analysis view with the required dimensions, and assign it to an account schedule. ( ) Nothing. By default all the dimensions are available in an account schedule. 7-98

341 Module 7: Financial Reporting and Analysis 4. If you want to export an analysis view to Microsoft Excel, from which page do you run the Export to Excel function? ( ) Analysis View page ( ) Account by Dimensions page ( ) Analysis by Dimensions Matrix page ( ) Account Schedule page 5. Which of the following statements about totaling accounts and dimensions is true? ( ) You can include them in the exported accounts by selecting the field on the Options FastTab. ( ) They have no posted entries and are never included in the exported accounts. ( ) You can display them as values in the exported data but cannot include the underlying formula. ( ) You can display them as values in the exported data and include the underlying formula. 7-99

342 Finance Advanced in Microsoft Dynamics NAV

343 MODULE 8: XBRL Module Overview extensible Business Reporting Language, or XBRL, is an XML-based language for tagging financial data. It enables businesses to efficiently and accurately process and share data. The XBRL initiative enables global financial reporting by many ERP software companies and international accounting organizations. The goal of the initiative is to provide a standard for the uniform reporting of financial information for banks, investors, and government authorities. Such business reporting can include the following: 1. Financial statements. 2. Financial information. 3. Non-financial information. 4. Regulatory filings, such as annual and quarterly financial statements and taxes. o Microsoft Dynamics NAV enables companies to share data in XBRL and take advantage of the flexibility and automation it provides for both collecting and sharing data. In addition, companies must know how to do the following: o o o o Objectives The objectives are: Import an XBRL taxonomy. Attach relevant linkbases that apply rules for reading the XBRL. Enter line definitions that identify the types of data, such as general ledger, comments, or descriptions. Export an instance document. Explain the terminology associated with XBRL. Explain how to import and update taxonomies. Explain how to attach, update, and apply linkbases to taxonomies. Describe pages that are related to XBRL lines, and explain how to enter XBRL line definitions Demonstrate how to export an instance document. 8-1

344 Finance Advanced in Microsoft Dynamics NAV 2013 XBRL Terminology The following definitions cover the basic concepts of XBRL: An XBRL Instance document is a business report, such as a financial statement, prepared to the XBRL specification. The meaning of the values in the instance document is explained by the taxonomy. The XBRL Schema are the core low-level components of XBRL. The schema are the physical XML Schema Definition (XSD) and Document Type Definition (DTD) files that express how instance documents and taxonomies are to be built. The XBRL Specification explains what XBRL is and how to build XBRL instance documents and XBRL taxonomies. The XBRL Specification explains XBRL in technical terms and is intended for a technical audience. An XBRL Taxonomy is a vocabulary or dictionary created by a group or organization that is compliant with the XBRL Specification to exchange business information. For more information about XBRL, refer to the website at XBRL Specifications and Taxonomies The XBRL organization released Specification Final in April Microsoft Dynamics NAV complies with Specification 2.1, although it still works with taxonomies that were prepared according to Specifications 2.0 and 1.0. In this lesson, a new taxonomy is imported into Microsoft Dynamics NAV and then reviewed. In addition, this lesson includes information on updating existing taxonomies. Note: The CRONUS International Ltd. demonstration database contains the IAS XBRL Spec. 2 taxonomy. Demonstration: Import a Taxonomy Scenario: A new IAS taxonomy must be imported into Microsoft Dynamics NAV. This taxonomy includes four linkbases that are automatically attached to the schema, and the linkbases are applied during the import process. After Phyllis, the accounting manager at CRONUS International Ltd., finishes the import, she reviews the imported lines. 8-2

345 Module 8: XBRL Note: The XBRL IAS Taxonomy files that you must have to complete this lesson are located on the desktop of the training image in the Business Intelligence folder within the Training Documents folder. Demonstration Steps 1. Import the IAS taxonomy. a. In the navigation pane, click Departments. b. Click Financial Management > General Ledger > XBRL Taxonomies. c. Click New to create a new taxonomy. d. In the Name field, type "IAS New". e. In the Description field, type "IAS New, Spec. 2". f. On the Home tab, click Schemas. g. On the Home tab, click Import. h. Browse to the folder where the XBRL IAS Taxonomy file was extracted. i. Click the IAS_Cronus.xsd file, and then click Open. j. In the Import dialog box select the label.xml file, and then click Open. k. In the Import dialog box select the reference.xml file, and then click Open. l. In the Import dialog box select the presentation.xml file, and then click Open. m. In the Import dialog box select the calculation.xml file, and then click Open. The import may take several minutes. During this process, the schema is imported and the relevant linkbases are attached. Linkbases must be attached before the program uses the taxonomy. 8-3

346 Finance Advanced in Microsoft Dynamics NAV Verify that the taxonomy was imported and that the linkbases are applied a. On the XBRL Schemas page, on the Home tab, click Linkbases. b. Notice that four linkbases were imported: Label, Reference, Presentation, and Calculation FIGURE 8.1: XBRL TAXONOMY SCHEMAS LINKBASES WINDOW c. Click OK to close the XBRL Linkbases page. d. Click OK to close the XBRL Schemas page. e. On the XBRL Taxonomies page, make sure that the line for IAS NEW is selected. f. On the Home tab, click Lines. The XBRL Taxonomy Lines page opens. g. Expand the Primary Financial Statements line by clicking the plus sign (+). h. Expand the Balance Sheet line. i. Expand the Assets line. j. Expand the Current Assets line. k. Locate the Trade and Other Receivables (Current) line. l. Click OK to close the XBRL Taxonomies page 8-4

347 Module 8: XBRL The labels, source types, and information from the linkbases were successfully imported. These terms are described in the "XBRL Taxonomy Lines Overview" lesson Procedure: Update a Taxonomy Occasionally, a taxonomy will change and must be updated. Microsoft Dynamics NAV lets users update only the changed lines. Therefore, not all the definitions must be entered every time. To update a taxonomy, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > XBRL Taxonomies. 3. Select the taxonomy that requires the update. 4. On the Home tab, click Schemas. 5. If it is necessary, select the relevant record in the XBRL Schemas page. 6. On the Home tab, click Import. 7. In the Import dialog box, select the file name of the updated taxonomy schema file. 8. Click Open. 9. Click Yes to replace the existing schema. 10. Import the linkbases as described in the "Import a Taxonomy" demonstration. The taxonomy is updated. Work with Linkbases Linkbases are the XML files that contain information that enables a taxonomy to be presented in a readable, usable format. As the demonstration of importing a taxonomy noted, Microsoft Dynamics NAV uses four types of linkbases: Label: Manages the text associated with taxonomy elements in various languages. Presentation: Puts the labels into usable order. Calculation: Assigns the calculation relations between the presented labels. Reference: Shows the information that is provided by the taxonomy provider. 8-5

348 Finance Advanced in Microsoft Dynamics NAV 2013 Linkbases must be attached to a taxonomy to make the information appear correctly. Typically, linkbases are attached automatically when a taxonomy is imported. There may be times when additional linkbases must be imported. Note: Specification 1 taxonomies do not require the attachment of linkbases. Microsoft Dynamics NAV uses a Specification 2 taxonomy. Procedure: Attach a Linkbase If a linkbase did not get attached during the taxonomy import, or a new linkbase is received such as, a label linkbase in another language a new XBRL linkbase can be created and applied to the taxonomy. To attach a linkbase to a taxonomy, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > XBRL Taxonomies. 3. Select the taxonomy to attach linkbases. 4. On the Home tab, click Schemas. 5. On the Home tab, click Linkbases. 6. Click New to add a new line. 7. In the Type field, enter the relevant linkbase type. 8. In the Description field, type a short description of the linkbase to be imported. 9. On the Navigate tab, click Import. 10. In the Import dialog box, select the relevant linkbase file. 11. Click Open. 12. Click Yes to apply the linkbase to the taxonomy or No to apply the linkbase to the taxonomy later. 13. After the file is imported regardless of whether the file was applied the XML File Imported check box is selected. 14. Click OK to close the XBRL Linkbases page. 15. Click OK to close the XBRL Schemas page. 16. Click OK to close the XBRL Taxonomies page. Note: Linkbase files typically contain the words label, presentation, calculation, or reference, but this may not always be the case. See the documentation that accompanies the taxonomy to review the file names. Linkbase files typically end in.xml. 8-6

349 Module 8: XBRL Procedure: Update a Linkbase When a taxonomy changes, the current taxonomy must be updated accordingly. The reason for the update can be an altered linkbase or a new linkbase. After you update the taxonomy, you must map the lines for the changed or new lines. To update a linkbase that has changed, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > XBRL Taxonomies. 3. Select the taxonomy to attach linkbases. 4. On the Home tab, click Schemas. 5. On the Home tab, click Linkbases. 6. Select the relevant record in the XBRL Linkbase page. 7. On the Navigate tab, click Import. 8. In the Import dialog box, select the file name of the updated taxonomy linkbase file. 9. Click Open. 10. Click Yes to replace the existing linkbase. 11. Click Yes to apply the linkbase to the taxonomy or No to apply the linkbase to the taxonomy later. The linkbase is updated. 12. Click OK to close the XBRL Linkbases page. 13. Click OK to close the XBRL Schemas page. 14. Click OK to close the XBRL Taxonomies page. Procedure: Apply a Linkbase Applying a linkbase can be time consuming. So instead of applying the linkbases individually right after the import, wait until all linkbases are imported and then apply them at the same time. To apply a specific linkbase, follow these steps: 1. On the navigation pane, click Departments. 2. Click Financial Management > General Ledger > XBRL Taxonomies. 3. Select the taxonomy to attach linkbases. 4. On the Home tab, click Schemas. 5. On the Home tab, click Linkbases. 6. Select the linkbase to apply to the taxonomy. 7. On the Actions tab, click Apply to Taxonomy. 8. Click Yes to apply the linkbase to the selected taxonomy. 8-7

350 Finance Advanced in Microsoft Dynamics NAV To apply all linkbases to a taxonomy, follow the previous steps, but rather than select a single linkbase to apply to a taxonomy, select all linkbases. 10. Click OK to close the XBRL Linkbases page. 11. Click OK to close the XBRL Schemas page. 12. Click OK to close the XBRL Taxonomies page. Enter XBRL Line Definitions After importing or updating a schema, the lines must be supplied with the information that corresponds to the line types, such as comments or descriptions, G/L accounts, or constants. In addition, irrelevant lines can be marked as Not Applicable and will not be exported with the XBRL instance document. Note: The mapping to the Chart of Accounts is the same for both Specification 1 and Specification 2 taxonomies. The difference is that Specification 1 taxonomies do not require the import of linkbases to enable you to view the XBRL Taxonomy Lines page. XBRL Taxonomy Lines Overview The XBRL Taxonomy Lines page: Is similar in structure to a chart of accounts or an account statement, depending on taxonomy and report selected. Contains the labels, source types, and information imported from the linkbases. To open the XBRL Taxonomy Lines page, follow these steps: 1. In the navigation pane, click Departments. 2. Click Financial Management > General Ledger > XBRL Taxonomies. 3. Select taxonomy IAS New. 4. On the Home tab, click Lines. 8-8

351 Module 8: XBRL FIGURE 8.2: XBRL TAXONOMY LINES WINDOW 5. Expand the General FastTab. The following fields are available: o o Taxonomy Name Identifies the current taxonomy. Label Language Indicates the taxonomy s language. Used for taxonomies that have various language versions. Other languages are active only if label linkbases are imported in other languages for a particular taxonomy. 6. In the bottom of the XBRL Taxonomy Lines page, the following fields are available: o Source Type This information is provided in the Calculations linkbase but can be changed. The options are as follows: Not Applicable Prevents a line from being exported to the XML document. Rollup Indicates that the line is a rollup of other lines. Enter the XBRL lines that will be rolled up into this line by clicking Rollups on the Home tab in the ribbon. Constant When selected, requires a fixed amount to be entered in the Constant Amount field. This option can be used to express several shares, for example. 8-9

352 Finance Advanced in Microsoft Dynamics NAV 2013 General Ledger Indicates that the information on the line comes from the general ledger. After mapping to the appropriate accounts in the chart of accounts, the G/L Map Lines check box is selected. Notes Indicates that there are notes that will be exported together with the instance document. If there is a note, the Notes check box is selected. Description Used to export a short description for the line. Tuple Represents several related lines. The related lines are listed below this line and are indented. o o o o o o o o Constant Amount Indicates fixed amount information such as number of employees. Used with the Source Type of Constant. Information When selected, indicates a message was imported with the taxonomy. This may be any information that the taxonomy provides. To view the information, click Information on the Home tab in the ribbon. Reference When selected, indicates that the Comment table contains a reference to official material relevant to the line. The reference was imported from the reference linkbase when the taxonomy was imported. To view the reference, click Reference on the Home tab in the ribbon. Notes When selected, indicates that a note is entered for the line that must be exported with the financial information. To add a note, click Notes on the Home tab in the ribbon. G/L Map Lines When selected, indicates this line is mapped to the chart of accounts. Rollup When selected, indicates this line has records in the Rollup Line table. This data was imported when the taxonomy was imported. The contents of this field cannot be changed or deleted. Description Enter a description on this line and select Source Type Description for the text to export with the financial information. Name The XBRL Line table contains all the definitions that exist in a given taxonomy. From this table, assign what information is to be exported in XML format and how it will be exported. The export file that is created is called an instance document. 8-10

353 XBRL G/L Map Lines Overview Module 8: XBRL The XBRL G/L Map Lines page is used to select which general ledger accounts Microsoft Dynamics NAV must use to calculate the amount that will be exported for each relevant line. To open the XBRL G/L Map Lines page, follow these steps: 1. On the XBRL Taxonomy Lines page, select a line with Source Type General Ledger. 2. On the Home tab, click G/L Map Lines. FIGURE 8.3: XBRL G/L MAP LINES WINDOW 3. The following fields are available: o G/L Account Filter Indicates the G/L account(s) that will be used to generate the exported data that is contained in the instance document. Only Posting accounts are used. Individual or multiple accounts can be entered. o Business Unit and Global Dimensions Filters Defines business units or dimensions to be used to generate the exported data that is contained in the instance document. 8-11